S. 1356 — TICKER Act

This section expresses the sense of Congress that variable interest entities based in foreign jurisdictions, including China, pose significant risks to U.S. investors due to lack of equity or direct ownership interest and legal recourse, and that such risks should be disclosed transparently through standardized, easily accessible warnings (e.g., on ticker symbols) on U.S. exchanges.

This section defines a covered entity as a consolidated variable interest entity (VIE) under generally accepted accounting principles (GAAP)—a structure often used to consolidate control without direct ownership, potentially limiting investor recourse—and requires national securities exchanges to identify listed covered entities in their trading symbols pursuant to new rules under Section 6(b)(11) of the Securities Exchange Act of 1934, effective 180 days after enactment. It further directs the Securities and Exchange Commission (SEC), beginning 180 days after enactment, to require brokers and dealers to warn investors in covered entities of potential lack of legal recourse.