ASA Urges House to Pass Accelerating Holding Foreign Companies Accountable Act
Sends letter ahead of Financial Services Committee hearing
WASHINGTON – The American Securities Association (ASA) today sent a letter to members of the Financial Services Committee ahead of a hearing examining risks China poses to American investors and U.S. capital markets. In the letter, ASA called on the House to quickly pass Rep. Sherman’s (D-CA) Accelerating Holding Foreign Companies Accountable Act to further strengthen investor protections and more quickly remove fraudulent Chinese companies from U.S. exchanges.
“This Committee can continue to protect investors as well as the economic and national security interests of the United States by passing Chairman Sherman’s Accelerating Holding Foreign Companies Accountable Act,” ASA CEO Chris Iacovella wrote in the letter. “This bill, also introduced by Senator Kennedy, passed the Senate unanimously and would remove non-compliant Chinese companies from U.S. exchanges starting in 2022. It’s time to get this much-needed and bipartisan legislation to the President’s desk.”
“The ASA is also concerned about the attention – or lack thereof – that U.S. exchanges have given this issue and their apparent willingness to continue to allow Chinese companies to list in the U.S,” Iacovella wrote. “The exchanges are self-regulatory organizations governed by the SEC with an obligation to protect the American public. Preserving a business relationship with a foreign government does not supersede that obligation.”
“Additionally, we welcome recent statements and actions taken by SEC Chair Gensler to halt new listings of Chinese companies in U.S. markets and we look forward to continuing to work with policymakers in a bipartisan manner to protect the interests of American investors and the U.S. capital markets,” Iacovella concluded.
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/.