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

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 EmergingMarkets@SEC.gov.[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.