ASA has urged the SEC to take action to protect American investors from fraudulent Chinese companies
WASHINGTON – The American Securities Association (ASA) today applauded Securities and Exchange Commission (SEC) Chairman Clayton for releasing a statement outlining the disclosure, financial reporting, and other risks Chinese companies pose to American investors.
“Since last year, ASA has urged the SEC to take action to protect American investors from fraudulent Chinese companies, and we commend Chairman Clayton for sounding the alarm on these risks,” said ASA CEO Chris Iacovella. “The SEC can further prioritize investor protection by closing the passive index loophole that fund issuers and index providers use to funnel American investor and retirement saver dollars to China, because no one knows how many of these companies are frauds.”
ASA has been at the forefront raising transparency and accountability concerns regarding American investors funding Chinese fraud. Earlier this month, ASA commented on the Luckin Coffee fraud and resulting shareholder loss, advocating that this exactly what happens when listed Chinese companies and those in index ETFs are not held to the rigorous transparency and audit standards that American laws require.
To read ASA CEO Iacovella’s op-ed “Why Are American Investors Funding Chinese Fraud?” in RealClearPolitics, click here.
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/.