WASHINGTON, D.C. – Today, Senator Rick Scott released the below statement following reports that the U.S. Securities and Exchange Commission (SEC) is moving forward with a plan to require Chinese companies with shares traded in America to use auditors overseen by U.S. regulators, or face being kicked off exchanges. For months, Senator Scott has been calling for additional protections and warnings for investors about the risks associated with Chinese-based companies trading publicly on U.S. exchanges.
Senator Rick Scott said, “U.S.-listed Chinese companies present regulatory, oversight and enforcement challenges that undermine transparency and confidence in American markets. For months, I’ve called on the SEC to take action to strengthen and enhance the oversight of these Chinese-based companies. I’m glad they are taking this important step to protect investors by shutting Chinese-based companies out of U.S. exchanges if they fail to be transparent and play by the same rules as U.S. businesses.”
Senator Scott has taken the following actions to protect American investors from the threat of Communist China:
- Senator Scott is a co-sponsor of the Holding Foreign Companies Accountable Act to protect American investors and their retirement savings from foreign companies that have been operating on U.S. stock exchanges while flouting SEC oversight. The legislation passed the Senate unanimously in May.
- Senator Scott is a co-sponsor of the Ensuring Quality Information and Transparency for Abroad-Based Listings on our Exchanges (EQUITABLE) Act, which would increase oversight of Chinese and other foreign companies listed on American exchanges and delist firms that are out of compliance with U.S. regulations for a period of three years.
- In January, Senator Scott sent a letter to the SEC Chairman expressing concerns about how Communist China’s recently enacted cryptology laws will affect the security of American businesses, and urging the SEC to require disclosures for investors, outlining the alarming reality of the risks they face by investing their hard earned dollars in companies doing business with Communist China.
- In February, Senator Scott expressed his concerns to the SEC Chairman about how U.S.-listed Chinese companies present regulatory, oversight and enforcement challenges that undermine transparency and confidence in American markets.
- In May, Senator Scott sent a letter to U.S. stock exchanges, major pension plans and underwriters urging them to review their policies and discontinue coordination with U.S.-listed Chinese-based companies considering the growing threat of Communist China.
- In August, Senator Scott sent a letter urging the SEC to immediately implement the recommendations of the President’s Working Group on Financial Markets to further safeguard American investors from the threat of Communist China.
- Last week, Senator Scott sent a letter urging every Chinese-based company currently listed on major U.S. stock exchanges to comply by the same Public Company Accountability Oversight Board (PCAOB) standards required by U.S. companies.