Sec. 3. Disclosure
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/bill/116/hr/3124/ih/section-3A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Commission shall maintain a publicly available list of— each foreign issuer, an audit report of which— is prepared by a foreign public accounting firm; and the Board is not able to inspect or investigate because of a position taken by an authority that is outside of the United States; each covered foreign public accounting firm that has prepared an audit report identified under subparagraph (A); and the jurisdiction in which each covered foreign public accounting firm identified under subparagraph
(B)is organized or operating. Not less frequently than annually, the Board shall provide to the Commission the information that is required for the Commission to carry out paragraph (1). Each applicable foreign issuer shall disclose in each covered form filed by the applicable foreign issuer— that, during the period covered by covered form, a covered foreign public accounting firm has prepared an audit report for the issuer; the percentage of the shares of the issuer owned by governmental entities in the foreign jurisdiction in which the issuer is incorporated or otherwise organized; whether governmental entities in a covered jurisdiction with respect to any covered foreign public accounting firm that has prepared an audit report for the issuer during the period covered by the form have a controlling financial interest with respect to the issuer; and the name of any official of the Chinese Communist Party who is a member of the board of directors of the issuer or the operating entity with respect to the issuer. Not later than 270 days after the date of enactment of this Act, and after providing the opportunity for public notice and comment, the Commission shall make any amendments to the regulations of the Commission that are required as a result of the requirements of this subsection. This subsection shall take effect on the date on which the Commission completes the amendments required under paragraph (2). Section 15(n) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78o(n) ) is amended— in paragraph (1), by striking Commission may issue and all that follows through the period at the end and inserting the following: “Commission— shall issue rules that require a broker and a dealer to disclose, with respect to any advice, analysis, or report of the broker or dealer to a retail investor regarding the securities of a foreign issuer, whether a covered foreign public accounting firm has prepared an audit report for the foreign issuer; and in addition to the rules required under subparagraph (A), may issue rules designating documents or information that shall be provided by a broker or dealer to a retail investor before the purchase of an investment product or service by the retail investor. ; and by adding at the end the following: In this subsection, the terms audit report , covered foreign public accounting firm , foreign issuer , and public accounting firm have the meanings given the terms in section 2 of the EQUITABLE Act of 2019 . .
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