United States of America: Holding Foreign Companies Accountable Act introduced

On 28 March 2019, S.945, the Holding Foreign Companies Accountable Act, containing regulations on reporting requirements of foreign companies, was introduced in the US Senate. The Act would apply to companies issuing securities which cannot be fully inspected by the Public Company Accounting Oversight Board because they maintain an accounting firm in a foreign jurisdiction where local rules prevent a full inspection. Such companies would be required to certify to the Securities and Exchange Commission (SEC) that they are not owned or controlled by a foreign governmental entity. Further, if a company is not subject to Board inspection for three consecutive years, the SEC would be required to prohibit the trading of its securities.