Duval Times

Sens. Rick Scott and Bob Casey have jointly introduced the Disclosing Investment in Foreign Adversaries Act, a legislation aimed at providing transparency into investments made by American private equity firms in countries of concern, such as China and Russia. The current lack of transparency allows private equity and venture capital firms to invest Americans' savings and pensions in China without the knowledge of the American people. The proposed legislation would require these firms to disclose the percentage of assets invested in countries like China to the Securities and Exchange Commission (SEC). Additionally, the SEC would be required to publicly release a report on firms investing in countries of concern and the percentage of invested assets.

The legislation also mandates that entities selling stock in the private markets disclose the recipient of the investment, the intended location of the investment, and the investment's intended purpose. The lack of ability for the public to monitor investments made by large private equity and venture capital funds in foreign economies poses a risk for American states, municipalities, universities, unions, and pension funds, as they could unknowingly be investing in economic competitors like China and Russia.

Senator Rick Scott emphasized the need for transparency, stating, "Our adversaries, like Communist China, benefit from a complete lack of transparency allowing them to hide and fund bad behavior—especially when it comes to financial markets." He further added, "It is time to stop sending American dollars to these countries of concern." Senator Scott commended the bipartisan effort with Senator Casey, emphasizing their aim to hold bad actors accountable.

Senator Casey echoed the sentiment, emphasizing that Americans deserve to know where and how their savings are being invested. He highlighted the importance of understanding if American money is being used to boost the economies of countries that steal technological know-how and jobs. The proposed legislation aims to provide better insight into how American dollars are being used to advance the interests of countries like China.

Industry leaders have also expressed support for the legislation. Chris Iacovella, President & CEO of the American Securities Association, commended Senators Casey and Scott for introducing the Disclosing Investments in Foreign Adversaries Act. Iacovella stated that the Chinese Communist Party has been exploiting U.S. capital markets and American investors for far too long, and this legislation would force Wall Street to disclose its investments in China, Iran, Russia, and North Korea. He emphasized the need to protect American investors and the integrity of U.S. capital markets.

FDD Action, an organization focused on safeguarding U.S. interests, endorsed the legislation as well. They highlighted the importance of transparency in the financial sector and the need to enhance reporting requirements for U.S. investments in countries like China, Iran, Russia, and North Korea. The organization emphasized the significance of protecting national security, promoting financial oversight, and ensuring that U.S. funds are not strengthening the capabilities and industrial bases of America's adversaries.

In conclusion, Senators Rick Scott and Bob Casey have introduced the Disclosing Investment in Foreign Adversaries Act to address the lack of transparency surrounding private equity investments in countries of concern. The proposed legislation aims to provide the American public with insights into these investments and ensure that American funds are not inadvertently supporting economic competitors. Industry leaders and organizations have expressed support for the legislation, highlighting the need to protect American investors and national security.

For additional details, please follow this link: https://www.rickscott.senate.gov/2023/11/sens-rick-scott-bob-casey-introduce-legislation-to-reveal-private-equity-investments-in-china-foreign-adversaries