,i #aaf? ,,congress #a/ ,session ,h4 ,r4 #cabd ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,june #e1 #bjai,mr4 ,conaway 7= himself1 ,mr4 ,ryan1 & ,mr4 ,gallagh]7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to am5d ! ,s>banes-,oxley ,act ( #bjjb to require ! ,public ,company ,acc\nt+ ,ov]sight ,bo>d to ma9ta9 a li/ ( c]ta9 =eign issu]s1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,ensur+ ,quality ,in=mation & ,transp>5cy = ,abroad-,bas$ ,li/+s on our ,ex*anges ( #bjai or ! ,,equitable ,act ( #bjai4 #b4 ,def9itions ,9 ?is ,act-- 7#a7 ! t]m applicable =eign issu] means a =eign issu]-- 7,a7 t is requir$ to file a cov]$ =m2 & 7,b7 = :i*1 dur+ ! p]iod cov]$ by ! fil+ describ$ 9 subp>agraph 7,a71 a cov]$ =eign public acc\nt+ firm has prep>$ an audit report = ! issu]2 7#b7 ! t]m audit report has ! mean+ giv5 ! t]m 9 section #b7;a7 ( ! ,s>banes-,oxley ,act ( #bjjb 7#ae ,u4,s4,c4 #gbja7;a772 7#c7 ! t]m ,bo>d means ! ,public ,company ,acc\nt+ ,ov]sight ,bo>d2 7#d7 ! t]m ,commission means ! ,securities & ,ex*ange ,commission2 7#e7 ! t]m cov]$ =eign public acc\nt+ firm means a =eign public acc\nt+ firm t ! ,bo>d is unable to inspect or inve/igate "u ! ,s>banes-,oxley ,act ( #bjjb 7#ae ,u4,s4,c4 #gbja et seq47 because ( a position tak5 by an au?ority outside ( ! ,unit$ ,/ates2 7#f7 ! t]m cov]$ =m-- 7,a7 means-- 7i7 ! =m describ$ 9 section #bdi4caj ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation2 & 7ii7 ! =m describ$ 9 section #bdi4bbj;f ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation2 & 7,b7 includes a =m t-- 7i7 is ! equival5t (1 or sub/antially simil> to1 ! =m describ$ 9 clause 7i7 or 7ii7 ( subp>agraph 7,a72 & 7ii7 a =eign issu] files ) ! ,commission "u ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 or rules issu$ "u t ,act2 7#g7 ! t]m cov]$ jurisdiction means ! =eign jurisdiction 9 :i* ! position describ$ 9 p>agraph 7#e7 is tak5 ) respect to a cov]$ =eign public acc\nt+ firm t prep>es an audit report = an applicable =eign issu]2 7#h7 ! t]m ex*ange has ! mean+ giv5 ! t]m 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a7a772 7#i7 ! t]m =eign issu] has ! mean+ giv5 ! t]m 9 section #bdj4c;b-#d ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation2 7#aj7 ! t]m =eign public acc\nt+ firm has ! mean+ giv5 ! t]m 9 section #ajf7;g7 ( ! ,s>banes-,oxley ,act ( #bjjb 7#ae ,u4,s4,c4 #gbaf7;g772 7#aa7 ! t]m national securities ex*ange means an ex*ange t is regi/]$ ) ! ,commission "u section #f ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;f72 & 7#ab7 ! t]m public acc\nt+ firm has ! mean+ giv5 ! t]m 9 section #b7;a7 ( ! ,s>banes-,oxley ,act ( #bjjb 7#ae ,u4,s4,c4 #gbja7;a774 #c4 ,disclosure 7a7 ,li/ ( c]ta9 =eign issu]s & cov]$ =eign public acc\nt+ firms 7#a7 ,9 g5]al ,! ,commission %all ma9ta9 a publicly available li/ (-- 7,a7 ea* =eign issu]1 an audit report ( :i*-- 7i7 is prep>$ by a =eign public acc\nt+ firm2 & 7ii7 ! ,bo>d is n able to inspect or inve/igate because ( a position tak5 by an au?ority t is outside ( ! ,unit$ ,/ates2 7,b7 ea* cov]$ =eign public acc\nt+ firm t has prep>$ an audit report id5tifi$ "u subp>agraph 7,a72 & 7,c7 ! jurisdiction 9 :i* ea* cov]$ =eign public acc\nt+ firm id5tifi$ "u subp>agraph 7,b7 is organiz$ or op]at+4 7#b7 ,role ( ! ,bo>d ,n less frequ5tly ?an annually1 ! ,bo>d %all provide to ! ,commission ! in=mation t is requir$ = ! ,commission to c>ry out p>agraph 7#a74 7b7 ,annual report disclosure 7#a7 ,disclosure ,ea* applicable =eign issu] %all disclose 9 ea* cov]$ =m fil$ by ! applicable =eign issu]-- 7,a7 t1 dur+ ! p]iod cov]$ by cov]$ =m1 a cov]$ =eign public acc\nt+ firm has prep>$ an audit report = ! issu]2 7,b7 ! p]c5tage ( ! %>es ( ! issu] own$ by gov]nm5tal entities 9 ! =eign jurisdiction 9 :i* ! issu] is incorporat$ or o!rwise organiz$2 7,c7 :e!r gov]nm5tal entities 9 a cov]$ jurisdiction ) respect to any cov]$ =eign public acc\nt+ firm t has prep>$ an audit report = ! issu] dur+ ! p]iod cov]$ by ! =m h a controll+ f9ancial int]e/ ) respect to ! issu]2 & 7,d7 ! "n ( any (ficial ( ! ,*9ese ,communi/ ,p>ty :o is a memb] ( ! bo>d ( directors ( ! issu] or ! op]at+ entity ) respect to ! issu]4 7#b7 ,update ( regulations ,n lat] ?an #bgj days aft] ! date ( enactm5t ( ?is ,act1 & aft] provid+ ! opportunity = public notice & comm5t1 ! ,commission %all make any am5dm5ts to ! regulations ( ! ,commission t are requir$ z a result ( ! requirem5ts ( ?is subsection4 7#c7 ,effective date ,?is subsection %all take effect on ! date on :i* ! ,commission completes ! am5dm5ts requir$ "u p>agraph 7#b74 7c7 ,disclosure by brok]s & deal]s ,section #ae7n7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho7n77 is am5d$-- 7#a7 9 p>agraph 7#a71 by /rik+ ,commission may issue & all t foll[s ?r\gh ! p]iod at ! end & ins]t+ ! foll[+3 8,commission-- 7,a7 %all issue rules t require a brok] & a deal] to disclose1 ) respect to any advice1 analysis1 or report ( ! brok] or deal] to a retail inve/or reg>d+ ! securities ( a =eign issu]1 :e!r a cov]$ =eign public acc\nt+ firm has prep>$ an audit report = ! =eign issu]2 & 7,b7 9 addition to ! rules requir$ "u subp>agraph 7,a71 may issue rules designat+ docum5ts or in=mation t %all be provid$ by a brok] or deal] to a retail inve/or be=e ! pur*ase ( an inve/m5t product or s]vice by ! retail inve/or4 2 & 7#b7 by add+ at ! end ! foll[+3 7#d7 ,def9itions ,9 ?is subsection1 ! t]ms audit report1 cov]$ =eign public acc\nt+ firm1 =eign issu]1 & public acc\nt+ firm h ! mean+s giv5 ! t]ms 9 section #b ( ! ,,equitable ,act ( #bjai4 4 #d4 ,prohibition aga9/ ! li/+ ( c]ta9 firms on national securities ex*anges 7a7 ,9 g5]al ,section #f7;b7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;f7b77 is am5d$ by add+ at ! end ! foll[+3 7#aa7 7,a7 ,! rules ( ! ex*ange prohibit ! initial li/+1 aft] ! date ( enactm5t ( ?is p>agraph1 ( any security ( an issu] = :i* a cov]$ =eign public acc\nt+ firm has prep>$ an audit report4 7,b7 ,no?+ 9 subp>agraph 7,a7 may be con/ru$ to prev5t an ex*ange f li/+ a security on ! ex*ange on or aft] ! date ( enactm5t ( ?is p>agraph if t security 0 li/$ on ! ex*ange or a national securities ex*ange be=e ! date ( enactm5t ( ?is p>agraph4 7,c7 ,9 ?is p>agraph1 ! t]ms audit report & cov]$ =eign public acc\nt+ firm h ! mean+s giv5 ! t]ms 9 section #b ( ! ,,equitable ,act ( #bjai4 7#ab7 7,a7 ,! rules ( ! ex*ange prohibit ! li/+ ( any security ( a =eign issu] t1 beg9n+ 9 #bjbe1 has be5 id5tifi$ "u section #c7;a77#a77;,a7 ( ! ,,equitable ,act ( #bjai 9 #c consecutive ye>s4 7,b7 ,no?+ 9 subp>agraph 7,a7 may be con/ru$ to prev5t an ex*ange f li/+ a security ( a =eign issu] describ$ 9 t subp>agraph beg9n+ on ! date on :i* ! issu] submits to ! ,commission an audit report = ! issu] t is prep>$ by a regi/]$ public acc\nt+ firm t ! ,public ,company ,acc\nt+ ,ov]sight ,bo>d has inspect$1 or is able to inspect1 "u section #ajd ( ! ,s>banes-,oxley ,act ( #bjjb 7#ae ,u4,s4,c4 #gbad74 7,c7 ,9 ?is p>agraph-- 7i7 ! t]ms audit report & regi/]$ public acc\nt+ firm h ! mean+s giv5 ! t]ms 9 section #b7;a7 ( ! ,s>banes-,oxley ,act ( #bjjb 7#ae ,u4,s4,c4 #gbja7;a772 & 7ii7 ! t]ms cov]$ =eign public acc\nt+ firm & =eign issu] h ! mean+s giv5 ! t]ms 9 section #b ( ! ,,equitable ,act ( #bjai4 4 7b7 ,rules 7#a7 ,proposals ,n lat] ?an #ij days aft] ! date ( enactm5t ( ?is ,act1 ea* national securities ex*ange %all1 9 accordance ) section #ai7;b7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghs7b77 & any rules prescrib$ by ! ,commission "u t section1 file ) ! ,commission any propos$ *ange to ! rules ( ! ex*ange t is requir$ z a result ( ! am5dm5ts made by ?is section4 7#b7 ,adoption ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ea* national securities ex*ange %all h ea* propos$ *ange describ$ 9 p>agraph 7#a7 approv$ by ! ,commission4