PRC Broker-Dealers and Investment Advisers Moratorium Act
Sponsored By: Senator McCormick, David [R-PA]
Introduced
Summary
A temporary ban on certain People's Republic of China (PRC)-connected ownership or control of U.S. broker-dealers and investment advisers. The bill would block firms that are controlled by PRC entities or PRC-resident nationals, or that rely on PRC-organized affiliates for essential services, from membership or registration while the restrictions are in force.
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- Brokers and dealers: Prohibits a broker or dealer from being a member of a national securities association if it is controlled by an entity organized under PRC law, controlled by a PRC national who resides in the PRC, or has a PRC affiliate that provides essential services like software or customer support. "Control" is defined as owning more than 25% of voting securities.
- Investment advisers: Bars registration as an investment adviser under the same ownership and affiliate conditions, using the same definitions and the same >25% control threshold.
- Oversight and duration: Grants national securities associations and the Securities and Exchange Commission authority to examine members and advisers as needed, including books and facilities located in foreign countries. The prohibitions include a built-in sunset and end five years after enactment.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Ban China-controlled brokers and advisers
If enacted, this would bar broker-dealers and investment advisers controlled by China from U.S. registration or national association membership. Control means beneficial ownership of more than 25 percent of voting securities. It also bans firms controlled by PRC nationals living in China, or with China-based affiliates providing essential services. The SEC and national securities associations would get authority to examine books and facilities, including on-site exams in foreign countries. U.S. person would mean U.S. citizens, lawful permanent residents, and U.S. entities, including foreign branches. These rules would take effect on enactment and expire five years later.
Sponsors & CoSponsors
Sponsor
McCormick, David [R-PA]
PA • R
Cosponsors
Sen. Fetterman, John [D-PA]
PA • D
Sponsored 7/30/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov