Clarity for Compensation Act
Take action
Record your position on this measure.
Create an account to record your position, submit testimony, or contact your legislator.
Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
The Clarity for Compensation Act amends the Securities Exchange Act of 1934 to create an exception for certain registered representative-owned personal services entities. Specifically, it allows these entities to receive compensation from a broker on behalf of a registered representative without being considered a broker themselves, provided certain conditions are met, including broker supervision, written agreements, and ownership restrictions. The bill also establishes requirements for record-keeping and oversight to ensure continued compliance.
Key provisions
- Creates an exception for registered representative-owned personal services entities from being classified as brokers.
- Establishes specific conditions that must be met for an entity to qualify for the exception (e.g., broker supervision, written agreements).
- Defines the ownership structure of the personal services entity to be limited to the registered representative, immediate family members, or wholly-owned entities controlled by those individuals.
- Requires brokers to maintain records and provide access to the Commission and self-regulatory organizations.
- Defines key terms related to the exception, such as ‘personal services entity’ and ‘broker or dealer activity.’
- Sets a 180-day delay before the new provisions take effect.
Who is affected
- Registered representatives
- Brokers
- Financial services firms
Bill text
Read the latest version inline or switch to a previous version.
Text extraction is in progress. View the official source.
Sponsors
Official sponsors from legislative records.
13 on record
Primary sponsor
Cosponsors
Arguments
Reasons offered for and against this legislation.
Arguments in favor
No arguments in favor have been submitted.
Submit yoursArguments opposed
No arguments opposed have been submitted.
Submit yours