,,ii  #aai? ,,congress  #a/ ,session    
,s4 #beeb  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #cj1 #bjbe,mr4   
,mc,cormick 7= himself & ,mr4 ,fett]man7
 introduc$ ! foll[+ bill2 :i* 0 read    
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to am5d ! securities laws to   
prohibit brok]s & deal]s ) c]ta9        
connections to ! ,p's ,republic ( ,*9a f
 be+ memb]s ( a national securities     
association1 to prohibit inve/m5t       
advis]s ) c]ta9 connections to ! ,p's   
,republic ( ,*9a f regi/]+ ) !          
,securities & ,ex*ange ,commission1 & = 
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,,prc ,brok]-,deal]s & 
,inve/m5t ,advis]s ,moratorium ,act4    
#b4 ,prohibitions  7a7 ,brok] or deal]  
memb]%ip 9 a national securities        
association  7#a7 ,9 g5]al ,section     
#ae;,a ( ! ,securities ,ex*ange ,act (  
#aicd 7#ae ,u4,s4,c4 #gho-#c7 is am5d$  
by add+ at ! end ! foll[+3  7o7         
,prohibition on memb]%ip relat$ to      

,*9ese own]%ip  7#a7 ,def9itions ,9 ?is 
subsection3 7,a7 ,affiliate ,! t]m      
affiliate has ! mean+ giv5 ! t]m 9      
section #b ( ! ,bank ,hold+ ,company    
,act ( #aief 7#ab ,u4,s4,c4 #ahda74     
7,b7 ,control ,! t]m control means      
b5eficially own+1 ei!r directly or ?r\gh
 #a or m companies1 m ?an #be p]c5t ( ! 
vot+ securities ( an entity4  7,c7      
,u4,s4 p]son ,! t]m ,u4,s4 p]son means--
 7i7 a ,unit$ ,/ates citiz5 or an ali5  
lawfully admitt$ = p]man5t resid5ce to !
 ,unit$ ,/ates2 or  7ii7 an entity      
organiz$ "u ! laws ( ! ,unit$ ,/ates or 
any jurisdiction )9 ! ,unit$ ,/ates1    
includ+ a =eign bran* ( su* an entity4  
7#b7 ,prohibition ,a brok] or deal] %all
 be prohibit$ f be+ a memb] ( a national
 securities association if ! brok] or   
deal]-- 7,a7 is controll$ by an entity  
organiz$ "u ! laws (1 or o!rwise subject
 to ! jurisdiction (1 ! ,p's ,republic (
 ,*9a2  7,b7 is controll$ by a national 
( ! ,p's ,republic ( ,*9a :o resides 9 !
 ,p's ,republic ( ,*9a2 or  7,c7 has an 

affiliate organiz$ "u ! laws (1 or      
o!rwise subject to ! jurisdiction (1 !  
,p's ,republic ( ,*9a t provides ! brok]
 or deal] ) ess5tial s]vices1 includ+   
s(tw>e developm5t or support1 product   
developm5t1 or cu/om] s]vice4  7#c7     
,exam9ation au?ority ,a national        
securities association %all h su*       
exam9ation au?ority ov] a memb] t is a  
brok] or deal] z ! association det]m9es 
to be necess>y to ensure compliance )   
?is subsection1 includ+ ! "r to exam9e !
 books & facilities ( a brok] or deal]  
locat$ 9 a =eign c\ntry4  4  7#b7       
,t]m9ation ,on ! date t is #e ye>s aft] 
! date ( enactm5t ( ?is ,act1 section   
#ae;,a ( ! ,securities ,ex*ange ,act (  
#aicd 7#ae ,u4,s4,c4 #gho-#c7 is am5d$  
by /rik+ subsection 7o71 z add$ by      
p>agraph 7#a7 ( ?is subsection4  7b7    
,inve/m5t advis] regi/ration  7#a7 ,9   
g5]al ,section #bjc ( ! ,inve/m5t       
,advis]s ,act ( #aidj 7#ae ,u4,s4,c4    
#hj;b-#c7 is am5d$ by add+ at ! end !   
foll[+3  7o7 ,prohibition on regi/ration

 relat$ to ,*9ese own]%ip  7#a7         
,def9itions ,9 ?is subsection3 7,a7     
,affiliate ,! t]m affiliate has ! mean+ 
giv5 ! t]m 9 section #b ( ! ,bank ,hold+
 ,company ,act ( #aief 7#ab ,u4,s4,c4   
#ahda74  7,b7 ,control ,! t]m control   
means b5eficially own+1 ei!r directly or
 ?r\gh #a or m companies1 m ?an #be     
p]c5t ( ! vot+ securities ( an entity4  
7,c7 ,u4,s4 p]son ,! t]m ,u4,s4 p]son   
means-- 7i7 a ,unit$ ,/ates citiz5 or an
 ali5 lawfully admitt$ = p]man5t        
resid5ce to ! ,unit$ ,/ates2 or  7ii7 an
 entity organiz$ "u ! laws ( ! ,unit$   
,/ates or any jurisdiction )9 ! ,unit$  
,/ates1 includ+ a =eign bran* ( su* an  
entity4  7#b7 ,prohibition ,a p]son %all
 be prohibit$ f be+ regi/]$ z an        
inve/m5t advis] if ! p]son-- 7,a7 is    
controll$ by an entity organiz$ "u !    
laws (1 or o!rwise subject to !         
jurisdiction (1 ! ,p's ,republic ( ,*9a2
  7,b7 is controll$ by a national ( !   
,p's ,republic ( ,*9a :o resides 9 !    
,p's ,republic ( ,*9a2 or  7,c7 has an  

affiliate organiz$ "u ! laws (1 or      
o!rwise subject to ! jurisdiction (1 !  
,p's ,republic ( ,*9a t provides ! brok]
 or deal] ) ess5tial s]vices1 includ+   
s(tw>e developm5t or support1 product   
developm5t1 or cu/om] s]vice4  7#c7     
,exam9ation au?ority ,! ,commission %all
 h su* exam9ation au?ority ov] an       
inve/m5t advis] z ! ,commission det]m9es
 to be necess>y to ensure compliance )  
?is subsection1 includ+ ! "r to exam9e !
 books & facilities ( an inve/m5t advis]
 9 a =eign c\ntry4  4  7#b7 ,t]m9ation  
,on ! date t is #e ye>s aft] ! date (   
enactm5t ( ?is ,act1 section #bjc ( !   
,inve/m5t ,advis]s ,act ( #aidj 7#ae    
,u4,s4,c4 #hj;b-#c7 is am5d$ by /rik+   
subsection 7o71 z add$ by p>agraph 7#a7 
( ?is subsection4