S. 2552 — PRC Broker-Dealers and Investment Advisers Moratorium Act

This section prohibits, for five years after enactment, (1) membership in a national securities association (e.g., FINRA) for any broker or dealer controlled by an entity or national of the People's Republic of China or having a Chinese affiliate that provides essential services (e.g., software development, product development, or customer service)—where control means beneficial ownership of more than 25% of voting securities directly or indirectly and affiliate has the meaning given in the Bank Holding Company Act of 1956 (12 U.S.C. 1841)—and authorizes association examinations including of foreign books and facilities; and (2) registration with the SEC as an investment adviser for any person meeting the same criteria, with comparable SEC examination authority. The prohibitions are added as new subsections to Section 15A(o) of the Securities Exchange Act of 1934 (15 U.S.C. 78o-3) and Section 203(o) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3), respectively, and automatically terminate after five years.