,,ii  #aaith ,,congress  #ast ,session  
,s4 #beeb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #cj1     
#bjbe,mr4 ,mc,cormick 7for himself and  
,mr4 ,fetterman7 introduced the         
following bill2 which was read twice and
 referred to the ,committee on ,banking1
 ,housing1 and ,urban ,affairs  ,a      
,,bill  ,to amend the securities laws to
 prohibit brokers and dealers with      
certain connections to the ,people's    
,republic of ,china from being members  
of a national securities association1 to
 prohibit investment advisers with      
certain connections to the ,people's    
,republic of ,china from registering    
with the ,securities and ,exchange      
,commission1 and for other purposes4    
#a4 ,short title ,this ,act may be cited
 as the ,,prc ,broker-,dealers and      
,investment ,advisers ,moratorium ,act4 
#b4 ,prohibitions  7a7 ,broker or dealer
 membership in a national securities    
association  7#a7 ,in general ,section  
#ae;,a of the ,securities ,exchange ,act

 of #aicd 7#ae ,u4,s4,c4 #gho-#c7 is    
amended by adding at the end the        
following3  7o7 ,prohibition on         
membership related to ,chinese ownership
  7#a7 ,definitions ,in this subsection3
 7,a7 ,affiliate ,the term affiliate has
 the meaning given the term in section  
#b of the ,bank ,holding ,company ,act  
of #aief 7#ab ,u4,s4,c4 #ahda74  7,b7   
,control ,the term control means        
beneficially owning1 either directly or 
through #a or more companies1 more than 
#be percent of the voting securities of 
an entity4  7,c7 ,u4,s4 person ,the term
 ,u4,s4 person means-- 7i7 a ,united    
,states citizen or an alien lawfully    
admitted for permanent residence to the 
,united ,states2 or  7ii7 an entity     
organized under the laws of the ,united 
,states or any jurisdiction within the  
,united ,states1 including a foreign    
branch of such an entity4  7#b7         
,prohibition ,a broker or dealer shall  
be prohibited from being a member of a  
national securities association if the  

broker or dealer-- 7,a7 is controlled by
 an entity organized under the laws of1 
or otherwise subject to the jurisdiction
 of1 the ,people's ,republic of ,china2 
7,b7 is controlled by a national of the 
,people's ,republic of ,china who       
resides in the ,people's ,republic of   
,china2 or  7,c7 has an affiliate       
organized under the laws of1 or         
otherwise subject to the jurisdiction   
of1 the ,people's ,republic of ,china   
that provides the broker or dealer with 
essential services1 including software  
development or support1 product         
development1 or customer service4  7#c7 
,examination authority ,a national      
securities association shall have such  
examination authority over a member that
 is a broker or dealer as the           
association determines to be necessary  
to ensure compliance with this          
subsection1 including the right to      
examine the books and facilities of a   
broker or dealer located in a foreign   
country4  4  7#b7 ,termination ,on the  

date that is #e years after the date of 
enactment of this ,act1 section #ae;,a  
of the ,securities ,exchange ,act of    
#aicd 7#ae ,u4,s4,c4 #gho-#c7 is amended
 by striking subsection 7o71 as added by
 paragraph 7#a7 of this subsection4  7b7
 ,investment adviser registration  7#a7 
,in general ,section #bjc of the        
,investment ,advisers ,act of #aidj 7#ae
 ,u4,s4,c4 #hj;b-#c7 is amended by      
adding at the end the following3  7o7   
,prohibition on registration related to 
,chinese ownership  7#a7 ,definitions   
,in this subsection3 7,a7 ,affiliate    
,the term affiliate has the meaning     
given the term in section #b of the     
,bank ,holding ,company ,act of #aief   
7#ab ,u4,s4,c4 #ahda74  7,b7 ,control   
,the term control means beneficially    
owning1 either directly or through #a or
 more companies1 more than #be percent  
of the voting securities of an entity4  
7,c7 ,u4,s4 person ,the term ,u4,s4     
person means-- 7i7 a ,united ,states    
citizen or an alien lawfully admitted   

for permanent residence to the ,united  
,states2 or  7ii7 an entity organized   
under the laws of the ,united ,states or
 any jurisdiction within the ,united    
,states1 including a foreign branch of  
such an entity4  7#b7 ,prohibition ,a   
person shall be prohibited from being   
registered as an investment adviser if  
the person-- 7,a7 is controlled by an   
entity organized under the laws of1 or  
otherwise subject to the jurisdiction   
of1 the ,people's ,republic of ,china2  
7,b7 is controlled by a national of the 
,people's ,republic of ,china who       
resides in the ,people's ,republic of   
,china2 or  7,c7 has an affiliate       
organized under the laws of1 or         
otherwise subject to the jurisdiction   
of1 the ,people's ,republic of ,china   
that provides the broker or dealer with 
essential services1 including software  
development or support1 product         
development1 or customer service4  7#c7 
,examination authority ,the ,commission 
shall have such examination authority   

over an investment adviser as the       
,commission determines to be necessary  
to ensure compliance with this          
subsection1 including the right to      
examine the books and facilities of an  
investment adviser in a foreign country4
  4  7#b7 ,termination ,on the date that
 is #e years after the date of enactment
 of this ,act1 section #bjc of the      
,investment ,advisers ,act of #aidj 7#ae
 ,u4,s4,c4 #hj;b-#c7 is amended by      
striking subsection 7o71 as added by    
paragraph 7#a7 of this subsection4