Bill Overview
Title: Holding Foreign Insiders Accountable Act
Description: This bill expands securities disclosure requirements applicable to directors, officers, and certain stockholders to include the securities of a foreign private issuer.
Sponsors: Sen. Kennedy, John [R-LA]
Target Audience
Population: People involved with foreign private issuers in the U.S. securities market
Estimated Size: 200000
- The bill affects directors, officers, and stockholders of foreign private issuers who are involved in the U.S. securities market.
- A foreign private issuer is a company incorporated in a foreign country that has publicly traded securities in the U.S.
- The bill focuses on expanding disclosure requirements, targeting insiders involved in such companies.
Reasoning
- The policy is likely to majorly impact foreign professionals and executives involved with private issuers who have operations within U.S. markets. In the scope of our study, these individuals will have a high impact.
- The American users of foreign investments benefit from enhanced transparency, but indirectly.
- There are people who are not influenced directly, such as general consumers or workers not involved in securities or investment industries.
- Budget and implementation will decide the extent of outreach. High priority could be placed on high-level investors and executives with direct ties to impacted entities.
Simulated Interviews
Chief Financial Officer (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- The new requirements will make my job more complicated but are necessary for transparency.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Investor (San Francisco, CA)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I welcome the bill as it improves my access to important data for decision-making.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Regulatory Compliance Analyst (Miami, FL)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- The additional disclosure requirements will mean more work, but it's beneficial overall for the market.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Technology Officer (Austin, TX)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This could be an administrative burden for foreign partners, but doesn't affect me much.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Stock Market Analyst (Chicago, IL)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- More disclosure can lead to better analysis of market trends for my work.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Legal Consultant (Boston, MA)
Age: 34 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- This will likely create more consulting work for me as foreign clients seek help.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Foreign Business Executive (Seattle, WA)
Age: 40 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 4/20
Statement of Opinion:
- Our transparency with U.S. regulators builds trust, but more paperwork is required.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Junior Stock Trader (Los Angeles, CA)
Age: 25 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I need more data for decisions, so this policy is helpful.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
University Professor (Portland, OR)
Age: 48 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- This policy will provide more case studies and discussion points in my classes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Retired Financial Officer (Atlanta, GA)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 20/20
Statement of Opinion:
- The policy is beneficial, but it won't affect me much now.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Cost Estimates
Year 1: $15000000 (Low: $10000000, High: $20000000)
Year 2: $12000000 (Low: $8000000, High: $16000000)
Year 3: $10000000 (Low: $7000000, High: $13000000)
Year 5: $8000000 (Low: $6000000, High: $10000000)
Year 10: $5000000 (Low: $4000000, High: $7000000)
Year 100: $1000000 (Low: $500000, High: $1500000)
Key Considerations
- Impact on the SEC's operating budget and resource allocation for enforcement of disclosure requirements.
- Risks associated with non-compliance or partial compliance from foreign private issuers.
- Balance between increasing transparency for investor protection and imposing burdensome requirements on foreign private issuers.