# 119-hr-7187: Clarity for Compensation Act

119-hr-7187, Clarity for Compensation Act, is a 119th Congress bill sponsored by Rep. Nunn, Zachary [R-IA-3] (R-IA); status in_committee; PRIA reads it as touching household money (as of 2026-11-01).

- Canonical: https://policyrisk.com/legislation/119-hr-7187
- As of: 2026-11-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-7187
- Congress: 119
- Title: Clarity for Compensation Act
- Status: in_committee
- Introduced: 2026-01-21
- Sponsor: Rep. Nunn, Zachary [R-IA-3] (R-IA)
- Cosponsors: 12
- Policy area: Finance and Financial Sector
- Touches household money: yes
- Last recorded action: 2026-11-01

## 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. - 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.

## Cosponsors (12)

- Rep. Meeks, Gregory W. [D-NY-5] (D-NY), 2026-01-21T00:00:00.000Z
- Rep. Pettersen, Brittany [D-CO-7] (D-CO), 2026-04-14T00:00:00.000Z
- Rep. Lawler, Michael [R-NY-17] (R-NY), 2026-06-02T00:00:00.000Z
- Rep. Stutzman, Marlin A. [R-IN-3] (R-IN), 2026-06-08T00:00:00.000Z
- Rep. Garbarino, Andrew R. [R-NY-2] (R-NY), 2026-06-10T00:00:00.000Z
- Rep. McBride, Sarah [D-DE-At Large] (D-DE), 2026-06-18T00:00:00.000Z
- Rep. Moore, Tim [R-NC-14] (R-NC), 2026-06-24T00:00:00.000Z
- Rep. Timmons, William R. [R-SC-4] (R-SC), 2026-06-25T00:00:00.000Z
- Rep. Kim, Young [R-CA-40] (R-CA), 2026-06-29T00:00:00.000Z
- Rep. De La Cruz, Monica [R-TX-15] (R-TX), 2026-06-30T00:00:00.000Z
- Rep. Kennedy, Timothy M. [D-NY-26] (D-NY), 2026-07-06T00:00:00.000Z
- Rep. Moran, Nathaniel [R-TX-1] (R-TX), 2026-07-06T00:00:00.000Z

## Provisions PRIA read

- New rules for representative payment entities: mixed, medium. 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…

## Related bills

- 119-hr-909: Crime Victims Fund Stabilization Act of 2025
- 119-hr-6644: 21st Century ROAD to Housing Act
- 119-hr-452: Miracle on Ice Congressional Gold Medal Act
- 119-hr-1422: Enhanced Iran Sanctions Act of 2025
- 119-hr-2102: Major Richard Star Act
- 119-hr-3151: SHIPS for America Act of 2025

## Sources
- [119-hr-7187 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/7187)

## Related
- [119-hr-909: Crime Victims Fund Stabilization Act of 2025](https://policyrisk.com/legislation/119-hr-909)
- [119-hr-6644: 21st Century ROAD to Housing Act](https://policyrisk.com/legislation/119-hr-6644)
- [119-hr-452: Miracle on Ice Congressional Gold Medal Act](https://policyrisk.com/legislation/119-hr-452)
- [119-hr-1422: Enhanced Iran Sanctions Act of 2025](https://policyrisk.com/legislation/119-hr-1422)
- [119-hr-2102: Major Richard Star Act](https://policyrisk.com/legislation/119-hr-2102)
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-7187 (as of 2026-11-01).