HR7187Referred to Committee

Clarity for Compensation Act

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Introduced
In Committee
3
Passed One Chamber
4
Passed Both
5
Signed into Law
119th
Congress
2026-01-21
Introduced
12
Cosponsors
HR
ⓘ
Type

Sponsor

Zachary Nunn
Zachary Nunn
Republican · IA · Representative
Votes with party: 96.0% (576 recorded votes)

Full profile: /officials/N000193

Source: Congress.gov · FEC

Cosponsors (12)

Members who have signed on to support this bill since introduction. Source: Congress.gov.

Latest Action

The most recent step in the bill's legislative path. Committee Activity below shows referrals and reports; the full action-by-action history including floor proceedings lives at Congress.gov →

Ordered to be Reported (Amended) by the Yeas and Nays: 51 - 0.

2026-06-30

Source: Congress.gov

Committee Activity

Currently in

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Plain-English Summary

The bill aims to establish clearer rules around how financial companies compensate their employees and executives, likely to prevent misleading pay practices and ensure workers understand their actual earnings. It would probably require financial firms to disclose compensation details more transparently to both employees and regulators. The changes would affect workers in the financial sector and potentially the companies that employ them.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

Subjects

Finance and Financial Sector

Full Bill Text

Verbatim text published on Congress.gov via GovInfo. Use Cmd+F / Ctrl+F to search within this excerpt.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 7187 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 7187 To amend the Securities Exchange Act of 1934 to provide an exemption from the definition of a broker for a certain registered representative-owned personal services entity, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES January 21, 2026 Mr. Nunn of Iowa (for himself and Mr. Meeks) introduced the following bill; which was referred to the Committee on Financial Services _______________________________________________________________________ A BILL To amend the Securities Exchange Act of 1934 to provide an exemption from the definition of a broker for a certain registered representative-owned personal services entity, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Clarity for Compensation Act''. SEC. 2. BROKER DEFINITION EXCEPTION FOR REGISTERED REPRESENTATIVE-OWNED PERSONAL SERVICES ENTITY. (a) In General.--Section 3(a)(4) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(4)) is amended by adding at the end the following: ``(G) Exception for registered representative-owned personal services entity.-- ``(i) In general.--A personal services entity shall not be considered a broker solely by reason of receiving compensation on behalf of a registered representative from that representative's broker at the direction of such representative, if-- ``(I) the broker instructs or otherwise approves the amount and timing of the payment and maintains records regarding the payment made; ``(II) the personal services entity does not hold itself out as a broker; ``(III) the personal services entity does not engage in broker or dealer activity, other than the receipt of compensation on behalf of the registered representative; ``(IV) the broker maintains adequate supervision and control over the registered representative; ``(V) the broker and the personal services entity have a written agreement governing their relationship and the responsibilities of each party regarding compensation arrangements; ``(VI) the personal services entity is only owned by-- ``(aa) the registered representative; ``(bb) if the registered representative is an individual, immediate family members of the registered representative; or ``(cc) entities wholly owned by-- ``(AA) the registered representative; or ``(BB) if the registered representative is an individual, immediate family members of the registered representative; and ``(VII) the personal services entity meets such other requirements as the Commission may prescribe, by rule. ``(ii) Oversight and examination.--In order to ensure that a personal services entity that is not considered a broker by reason of this subparagraph continues to meet the requirements to not be considered a broker by reason of this subparagraph, the personal services entity shall maintain, and make available upon request to the Commission and the applicable self- regulatory organization, all books and records that both-- ``(I) the broker from which the personal services entity receives compensation is required to maintain and make available to the Commission and the applicable self-regulatory organization; and ``(II) the Commission determines necessary and appropriate to demonstrate that the personal services entity continues to meet the requirements to not be considered a broker by reason of this subparagraph. ``(iii) Definitions.--In this subparagraph: ``(I) Applicable self-regulatory organization.--With respect to a personal services entity or a registered representative of a broker, the term `applicable self-regulatory organization' means each self- regulatory organization with which the related broker is required to be registered. ``(II) Broker or dealer activity.-- The term `broker or dealer activity' means an activity undertaken by a broker or a dealer who is registered, or required to be registered, under this Act. ``(III) Immediate family member.-- With respect to an individual, the…
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term `immediate family member' means a spouse, child, parent, brother, sister, grandparent, grandchild, stepparent, stepchild, stepbrother, or stepsister of the individual. ``(IV) Personal services entity.-- The term `personal services entity' means an entity that is established by a registered representative to receive compensation for the services of the registered representative and for administrative purposes and other benefits. ``(V) Registered representative.-- With respect to a broker, the term `registered representative' means a person who is-- ``(aa) an `associated person of a broker or dealer' with respect to the broker; and ``(bb) registered with the applicable self-regulatory organization.''. (b) Effective Date.--Section 3(a)(4)(G) of the Securities Exchange Act of 1934, as added by subsection (a), shall take effect on the date that is 180 days after the date of the enactment of this Act. <all>
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