United States of America: SEC adopts Amendments to rules implementing the Holding Foreign Companies Accountable Act

On 2 December 2021, the Securities and Exchange Commission (SEC) published amendments to its interim measures implementing the disclosure and submission requirements outlined in the Holding Foreign Companies Accountable Act (HFCA Act). The amendments state that companies issuing securities in the United States that maintain an accounting firm in a foreign jurisdiction where local rules prevent a full inspection, have to submit documents to demonstrate that they are not owned or controlled by a foreign governmental entity. Furthermore, the amendments note that companies identified by the SEC as "foreign issuers" have to submit additional documents on their operation in the US and of their foreign business subsidiaries. Finally, the amendments include information on the SEC’s procedure for identifying "foreign issuers" and imposing trading prohibitions.