# Plain Language Summary: Holding Foreign Insiders Accountable Act

Right now, there's a loophole in how the U.S. tracks insider trading by executives and major shareholders of foreign companies that sell stock to American investors. When a top executive or major owner of a foreign company buys or sells shares of their own company, they're supposed to report these trades to the Securities and Exchange Commission (SEC) so the public can see what's happening. But foreign companies have been able to avoid these reporting requirements, which means American investors don't get the same transparency they'd get with U.S. companies. This bill closes that loophole by requiring foreign companies' directors, officers, and major shareholders to report their stock trades just like American company insiders have to do.

The practical effect is straightforward: if you invest in a foreign company's stock through an American exchange, you'll now have access to the same insider trading information that you'd get for American companies. This helps you see when company leaders are buying or selling their own stock, which can be a signal about whether they think the company is doing well or poorly. It also helps prevent foreign insiders from secretly trading on information that isn't available to regular investors. The SEC has 90 days to write the specific rules for how this will work, but the core requirement is simple—foreign insiders will have to play by the same disclosure rules as American insiders.

Holding Foreign Insiders Accountable Act

Luetkemeyer, Blaine

Holding Foreign Insiders Accountable Act This bill expands securities disclosure requirements applicable to directors, officers, and certain stockholders to include the securities of a foreign private issuer.