Senators McCormick & Fetterman Introduce Legislation to Target PRC Financial Firms & Protect U.S. Economic Security

WASHINGTON, D.C.— Senator Dave McCormick (R-PA) and Senator John Fetterman (D-PA) today introduced thePRC Broker-Dealers and Investment Advisers Moratorium Actto protect U.S. markets, consumers, and national economic security. This legislation is in response to growing concerns on the unequal regulatory landscape between the United States and the People’s Republic of China (PRC) that expose U.S. financial markets and consumer data to risk from Chinese Communist Party (CCP)-linked firms.
“ThePRC Broker-Dealers and Investment Advisers Moratorium Actrecognizes that CCP-linked firms pose an inherent risk to our financial system,”said Senator McCormick.“This bill gives the financial regulators necessary time to evaluate the impact on U.S. consumer protection and protects the U.S. retail investor.”
“Pennsylvanians don’t want their hard‑earned savings snooped on or toyed with by the Chinese Communist Party. This bipartisan bill slams the brakes on CCP‑linked broker‑dealers and investment advisers until our regulators can give them a full, no‑nonsense inspection,”said Senator Fetterman.“Protecting American investors and our economic security isn’t a partisan fight, and I’m proud to team up with Senator McCormick to get it done.”
While China restricts access of U.S. firms to its retail financial market, U.S. markets are open for business to Chinese affiliates. The affiliates have access to millions of Americans’ personally identifiable information and sensitive data. Further, U.S. regulators, including the SEC and FINRA, do not have the authority to conduct enforcement actions or examinations in mainland China.
With the landscape of retail investing and market innovations quickly changing, the U.S. must act quickly to guard against the further intrusion of CCP-linked entities into our markets.
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