Paul Leder Quoted on Legislation Targeting Foreign Companies Listed in the U.S. in Financial Times

"U.S. Regulator Under Fire for Delays to Delisting Chinese Stocks"

Financial Times


Paul Leder, a former senior official at the U.S. Securities and Exchange Commission (SEC), commented on the delayed implementation of the delisting provisions U.S. Congress included in the Holding Foreign Companies Accountable Act (HFCA). The HFCA, which Congress passed in 2020, empowers the SEC to delist a foreign company from U.S. exchanges if the company's auditor is not, for a three-year period, subject to inspection by the Public Company Accounting Oversight Board. Currently, companies from China and Hong Kong are most likely to be subject to that sanction but, as Leder noted in the article, the SEC has yet to publish the regulations needed to begin the three-year countdown to delisting.