U.S. Sens. Bob Casey (D-PA) and Rick Scott (R-FL) introduced that seeks to provide transparency into investments made by American hedge funds and private equity firms in countries of concern like China and Russia.
The Disclosing Investments in Foreign Adversaries Act would require these private investment funds to annually disclose any assets invested in countries like Russia and China to the Securities and Exchange Commission (SEC). It would also require the SEC to publicly release a report of firms investing assets in countries of concern and the percentage of those invested assets. Further, entities selling stock in the private markets would also be required to disclose the recipient of the investment, the intended location of the investment, and the investment’s intended purpose.
“Americans deserve to know where and how their savings are being invested,” Casey said. “It is vital to know if our money is being used to boost the economies of our adversaries who steal our technological know-how and steal our jobs. This legislation will help Americans better understand how our own dollars are being used to advance the interests of countries like China.”
Without the ability to monitor investments made by large private equity, hedge funds, and venture capital funds in foreign economies, states, municipalities, universities, unions, and pension funds could unknowingly be investing in economic competitors like China and Russia.
“These foreign adversaries lie, cheat and steal, and it’s almost impossible to call them out for it. It is time to stop sending American dollars to these countries of concern,” Scott said. “I am proud to lead this bipartisan charge with my colleague Senator Casey as we work across the aisle to hold bad actors accountable.”
The bill has the support of the American Securities Association and FDD Action.
“The American people deserve to know whether their hard-earned savings are invested here at home or sent to adversaries abroad. The Disclosing Investments in Foreign Adversaries Act brings much-needed transparency to the financial sector by enhancing reporting requirements for U.S. investments in countries like China, Iran, Russia, and North Korea,” FDD Action officials said. “This commonsense legislation protects our national security, promotes greater financial oversight, and ensures that U.S. funds are not strengthening the technological capabilities and industrial bases of America’s adversaries. FDD Action is pleased to endorse this legislation to safeguard our financial future and strategic interests.”