PRC Broker-Dealers and Investment Advisers Moratorium Act

Michael Lawler

Republican · NY · Representative

Source: Congress.gov · FEC

• Josh Gottheimer (D-NJ-5)Original· 2026-05-26

Referred to the House Committee on Financial Services.

2026-05-26

Source: Congress.gov

The proposal would prevent brokers, dealers, and investment advisers that have certain ties to China from getting permission to operate in the U.S. financial system. This would affect financial firms and professionals who want to work with American investors but have connections to the Chinese government or Chinese companies. The measure aims to reduce potential national security risks by limiting foreign influence in the U.S. securities industry.

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.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 9028 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 9028 To amend the securities laws to prohibit brokers, dealers, and investment advisers with certain connections to the People's Republic of China from registering with the Securities and Exchange Commission, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES May 26, 2026 Mr. Lawler (for himself and Mr. Gottheimer) introduced the following bill; which was referred to the Committee on Financial Services _______________________________________________________________________ A BILL To amend the securities laws to prohibit brokers, dealers, and investment advisers with certain connections to the People's Republic of China from registering with the Securities and Exchange Commission, 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 ``PRC Broker-Dealers and Investment Advisers Moratorium Act''. SEC. 2. PROHIBITIONS. (a) Broker or Dealer Registration.-- (1) In general.--Section 15 of the Securities Exchange Act of 1934 (15 U.S.C. 78o) is amended by adding at the end the following: ``(p) Prohibition on Registration as a Broker or Dealer Related to Chinese Ownership.-- ``(1) Control defined.--In this subsection, the term `control' means beneficially owning, either directly or through 1 or more companies, more than 15 percent of the voting securities of an entity. ``(2) Prohibition.--A broker or dealer shall be prohibited from being registered as a broker or dealer under subsection (b) if-- ``(A) the broker or dealer is an entity organized under the laws of the People's Republic of China; ``(B) the broker or dealer is controlled by an entity organized under the laws of the People's Republic of China; ``(C) the broker or dealer is controlled by a national of the People's Republic of China who resides in the People's Republic of China; or ``(D) there is an associated person of the broker or dealer organized under the laws of the People's Republic of China that provides the broker or dealer with services, related to-- ``(i) platform infrastructure; ``(ii) network services; or ``(iii) software or product development, maintenance, or support.''. (2) Termination.--On the date that is 5 years after the date of enactment of this Act, section 15 of the Securities Exchange Act of 1934 (15 U.S.C. 78o) is amended by striking subsection (p), as added by paragraph (1) of this subsection. (b) Investment Adviser Registration.-- (1) In general.--Section 203 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3) is amended by adding at the end the following: ``(o) Prohibition on Registration as an Investment Adviser Related to Chinese Ownership.-- ``(1) Control defined.--In this subsection, the term `control' means beneficially owning, either directly or through 1 or more companies, more than 15 percent of the voting securities of an entity. ``(2) Prohibition.--A person may not be registered as an investment adviser if-- ``(A) the person is an entity organized under the laws of the People's Republic of China; ``(B) the person is controlled by an entity organized under the laws of the People's Republic of China; ``(C) the person is controlled by a national of the People's Republic of China who resides in the People's Republic of China; or ``(D) an affiliate of the person is organized under the laws of the People's Republic of China that provides the person with services, including-- ``(i) software development or support; ``(ii) product development; or ``(iii) customer service.''. (2) Termination.--On the date that is 5 years after the date of enactment of this Act, section 203 of the Investment Advisers…

Act of 1940 (15 U.S.C. 80b-3) is amended by striking subsection (o), as added by paragraph (1) of this subsection. <all>

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