ASA Sends Letter Ahead of House Financial Services Markup

Supports legislation to enhance Chinese financing transparency, opposes political spending bill

WASHINGTON – Ahead of today’s House Financial Services Committee markup, the American Securities Association (ASA) sent a letter in support of H.R. 5932, the Chinese Debt Transparency Act of 2020, sponsored by Rep. French Hill (R-AR) to ensure greater transparency with respect to financing provided by the Chinese government. In the letter, ASA also came out in strong opposition to H.R. 5929, the Shareholder Political Transparency Act of 2020, which tramples on the First Amendment rights of American citizens.

“The lack of transparency in China’s financial arrangements makes it tremendously difficult for the United States, and other global actors, to accurately monitor global financial risk,” ASA CEO Chris Iacovella wrote. “H.R. 5932 would give U.S. officials at international financial bodies an important mandate to use their voice and vote in support of practices that will hold China accountable.”

Iacovella warned the political spending bill “represents a direct threat to the First Amendment rights of American citizens that wish to express their freedom of speech and engage in political activity. The legislation arbitrarily targets businesses – whose First Amendment rights have been affirmed by the Supreme Court – with a regulatory regime that ultimately seeks to silence their speech.”

“Moreover, the requirement for public companies to disclose certain political spending in their quarterly reports violates the Supreme Court’s longstanding 'materiality' standard for corporate disclosure,” Iacovella wrote. “This information does not help shareholders make informed investment and voting decisions and would simply saddle businesses and shareholders with an unnecessary cost.”

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ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at http://americansecurities.org/.