PRC Broker-Dealers and Investment Advisers Moratorium Act

This bill prohibits broker-dealers and investment advisers with significant Chinese government ties from operating in the U.S. financial system. Specifically, it bans membership in national securities associations for firms controlled by entities organized under China’s laws, Chinese nationals residing in China, or affiliates providing essential services (like software or customer support) from China. The prohibition applies if a firm is controlled by more than 25% of voting shares by such Chinese entities, with enforcement through mandatory examinations by regulators. The ban expires automatically 5 years after the bill becomes law. It directly affects financial firms with substantial Chinese ownership or operational control.