ASA Welcomes Congressional Action on Investor Protection from Fraudulent Companies
WASHINGTON, D.C. – Today, the American Securities Association (ASA) welcomed the U.S. House Financial Services Investor Protection, Entrepreneurship, and Capital Markets Subcommittee hearing on examining U.S. capital flows to foreign rivals and sent a letter encouraging the Committee’s consideration of the Accelerating Holding Foreign Companies Accountable Act (AHFCAA) and the Index Fund Investor Protection Act.
“ASA applauds the House Financial Services Committee for holding today’s hearing and for considering two significant pieces of legislation to protect the integrity of our markets and American investors from the Chinese Communist Party (CCP),” ASA CEO Chris Iacovella said. "We strongly support Congress empowering American regulators to force every CCP-controlled company that refuses to comply with U.S. laws to be delisted from U.S. stock exchanges. Passing ‘Accelerating’ is a bipartisan issue, one the Senate has unanimously passed, and we encourage this Committee to do the same immediately. We also thank Rep. Sherman for introducing the Index Fund Investor Protection Act, which will close the “passive index loophole” that currently allows CCP-controlled Chinese companies to access American investor dollars through index funds. Ending this loophole will stop American money from continuing to fund China’s indiscriminate pollution, human rights violations, and military belligerence.”
For years, ASA has led advocacy efforts to end China’s fraud on our markets. ASA has called on the SEC to swiftly and fully implement the Holding Foreign Companies Accountable Act, a bill in which ASA was the lead advocate, and 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.