ASA Welcomes Bipartisan Introduction of Disclosing Investments in Foreign Adversaries Legislation
WASHINGTON, D.C. – The American Securities Association (ASA) yesterday issued the following statement from President & CEO Chris Iacovella on the introduction of the Disclosing Investments in Foreign Adversaries Act of 2023, by U.S. Senator Bob Casey (D-PA) and U.S. Senator Rick Scott (R-FL). The Disclosing Investments in Foreign Adversaries Act focuses on funds that invest in companies from China, Iran, Russia, and North Korea.
“The Chinese Communist Party has been methodically exploiting U.S. capital markets and American investors to fund its economic and military rise for far too long. ASA commends Senator Bill Casey and Senator Rick Scott for introducing the Disclosing Investments in Foreign Adversaries Act, which would force Wall Street to disclose its investments in China, Iran, Russia, and North Korea,” said ASA President & CEO Chris Iacovella. “A strong, bipartisan consensus in Washington has emerged that wants to end the Chinese Communist Party’s access to American capital, and this Congress should take advantage of that momentum to protect American investors and the integrity of our capital markets.”
Introduced by U.S. Senator Bob Casey and U.S. Senator Rick Scott, the Disclosing Investments in Foreign Adversaries Act would provide transparency into individual funds’ investments in China, Iran, Russia, and North Korea. Specifically, this bill would:
Require private funds to annually disclose assets invested in each country of concern (People’s Republic of China, Iran, North Korea, and Russia) on Form PF to the SEC;
Require the SEC to annually make available a public report containing a list of entities and their reported percentage of assets invested or located in each country of concern;
Require mutual funds and exchange-traded funds to publicly disclose the percentage of the fund’s net assets allocated in countries of concern, at least annually; and
Require companies issuing securities in U.S. markets to disclose the beneficial owners of the issuer, intended use of the proceeds, and the countries/sectors where the proceeds would be invested.
In May 2023, ASA submitted testimony to the U.S. House Select Committee on the Chinese Communist Party before a hearing entitled, “Leveling the Playing Field: How to counter the Chinese Communist Party’s Economic Aggression.”
About the American Securities Association
American Securities Association, based in Washington, DC, represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.