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119-hr-7187119th CongressWALLET

Clarity for Compensation Act

Sponsored By: Representative Nunn, Zachary [R-IA-3]

In Committee

Summary

Would create a narrow exemption that prevents a registered representative‑owned personal services entity from being treated as a broker under the Securities Exchange Act. It would set strict ownership, supervision, recordkeeping, marketing, and dispute‑resolution rules to limit the exemption.

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  • Registered representatives and their personal services entities would be able to receive compensation through a separate entity without that entity automatically being treated as a broker, if all conditions are met.
  • Broker‑dealers and self‑regulatory organizations would have to approve payments, keep records, supervise the registered representative and the personal services entity, and could examine the PSE’s books to verify continued eligibility.
  • Customers would keep recovery protections because a personal services entity must agree to SRO dispute resolution and remain liable for securities‑related awards to the extent of assets held by the entity.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

New rules for representative payment entities

This bill would create a narrow exception so a personal services entity (PSE) owned by a registered representative would not be treated as a broker solely because it receives the representative's compensation. The PSE would qualify only if the broker approves and records the payments, the PSE does not hold itself out as a broker, the PSE does not do other broker activities, the broker supervises the representative and PSE, there is a written agreement, and ownership is limited to the representative, immediate family, or entities they wholly own. The PSE would have to submit in writing to the applicable self‑regulatory organization for enforcement of awards against the representative, remain bound by awards up to the PSE's assets, and keep books and records the broker must keep. The exception would take effect 180 days after enactment and the SEC could add rules or recordkeeping requirements.

Sponsors & CoSponsors

Sponsor

Nunn, Zachary [R-IA-3]

IA • R

Cosponsors

  • Rep. Meeks, Gregory W. [D-NY-5]

    NY • D

    Sponsored 1/21/2026

  • Rep. Pettersen, Brittany [D-CO-7]

    CO • D

    Sponsored 4/14/2026

  • Rep. Lawler, Michael [R-NY-17]

    NY • R

    Sponsored 6/2/2026

  • Rep. Stutzman, Marlin A. [R-IN-3]

    IN • R

    Sponsored 6/8/2026

  • Rep. Garbarino, Andrew R. [R-NY-2]

    NY • R

    Sponsored 6/10/2026

  • Rep. McBride, Sarah [D-DE-At Large]

    DE • D

    Sponsored 6/18/2026

  • Rep. Moore, Tim [R-NC-14]

    NC • R

    Sponsored 6/24/2026

  • Rep. Timmons, William R. [R-SC-4]

    SC • R

    Sponsored 6/25/2026

  • Rep. Kim, Young [R-CA-40]

    CA • R

    Sponsored 6/29/2026

  • Rep. De La Cruz, Monica [R-TX-15]

    TX • R

    Sponsored 6/30/2026

  • Rep. Kennedy, Timothy M. [D-NY-26]

    NY • D

    Sponsored 7/6/2026

  • Rep. Moran, Nathaniel [R-TX-1]

    TX • R

    Sponsored 7/6/2026

Roll Call Votes

No roll call votes available for this bill.

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