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Statement on SEC Response to the Report of the President’s Working Group on Financial Markets

Jay Clayton, Chairman
Dalia Blass, Director, Division of Investment Management
Raquel Fox, Director, Office of International Affairs
William Hinman, Director, Division of Corporation Finance
Brett Redfearn, Director, Division of Trading and Markets
Sagar Teotia, Chief Accountant

Aug. 10, 2020

Public Comments May be Submitted to the Emerging Markets Roundtable Comment Page

On August 6, 2020, the President’s Working Group on Financial Markets, of which Chairman Clayton is a member, released its Report on Protecting United States Investors from Significant Risks from Chinese Companies (“PWG Report”). The PWG Report includes five recommendations for the Securities and Exchange Commission that are centered on strengthening protections for investors and promoting the integrity of our capital markets by (1) leveling the playing field for all companies listed on U.S exchanges and (2) improving disclosure regarding, and consideration by fiduciaries and other market professionals of, the risks of investing in emerging markets, including China. Chairman Clayton has directed the SEC staff to prepare proposals in response to the report’s recommendations for consideration by the Commission and to provide assistance and guidance to investors and other market participants as may be necessary or appropriate. The SEC staff also stands ready to assist Congress with technical assistance in connection with any potential legislation regarding these matters.

In addition to other actions over the past several years to bring greater attention to the various risks associated with investing in emerging markets, last month the SEC staff held an Emerging Markets Roundtable (“July Roundtable”).[1] During the July Roundtable, investors, other market participants, regulators and industry experts discussed issues related to the risks of investing in emerging markets, including China, the world’s largest emerging market and its second largest economy. A number of issues described in the PWG Report were discussed in detail at the July Roundtable. In connection with the July Roundtable, the SEC also opened a public comment page to provide members of the public an opportunity to submit their views as well as review the views of others.

Should members of the public have any views or other information that they would like the SEC staff to consider as the staff develops proposals for the Commission in response to the PWG Report, we encourage members of the public to submit their comments to[2] Submissions will be added to the comment page for the July Roundtable and made publicly available. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions, so you should submit only information that you wish to make publicly available. We encourage members of the public to review the PWG Report and the materials from the July Roundtable, including the comments already posted on the comment page, as they consider submitting their own views.

We welcome the views of all market participants and members of the public and, as always, are keen to receive comments that discuss actions that are in the best interests of our long-term Main Street investors.

[1] See also SEC Chairman Jay Clayton, PCAOB Chairman William D. Duhnke III, SEC Chief Accountant Sagar Teotia, SEC Division of Corporation Finance Director William Hinman and SEC Division of Investment Management Director Dalia Blass, Emerging Market Investments Entail Significant Disclosure, Financial Reporting and Other Risks; Remedies are Limited (Apr. 21, 2020), available at; SEC Chairman Jay Clayton, PCAOB Chairman William D. Duhnke III, SEC Chief Accountant Sagar Teotia and SEC Division of Corporation Finance Director Bill Hinman, Statement on Continued Dialogue with Audit Firm Representatives on Audit Quality in China and Other Emerging Markets; Coronavirus — Reporting Considerations and Potential Relief (Feb. 19, 2020) available at; Press Release, SEC Chairman Clayton, PCAOB Chairman Duhnke, and Members of SEC Staff Meet With Auditing Firm Representatives to Discuss Audit Quality in Emerging Economies and Markets (Nov. 4, 2019), available at; SEC Chairman Jay Clayton, Former SEC Chief Accountant Wes Bricker, and PCAOB Chairman William D. Duhnke III, Statement on the Vital Role of Audit Quality and Regulatory Access to Audit and Other Information Internationally—Discussion of Current Information Access Challenges with Respect to U.S.-listed Companies with Significant Operations in China (Dec. 7, 2018) available at

[2] Members of the public are also encouraged to submit comments on any future rulemaking to the comment file associated with the rulemaking and during the official comment period, if applicable.

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