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H.R. 7187: Clarity for Compensation Act

119th Congress · introduced 2026-01-21 · Finance and Financial Sector · Latest: Placed on the Union Calendar, Calendar No. 691.

federal

What does this mean?

Official title

Clarity for Compensation Act

Plain summary

Clarity for Compensation Act This bill allows individuals who work for registered brokers to receive compensation for their services through their own personal businesses without having to register with the Securities and Exchange Commission (SEC). Specifically, the bill exempts certain personal services entities from SEC broker regulations. As background, brokers (persons engaged in the business of making securities transactions on behalf of others) must register with the SEC and become members of a self-regulatory organization (SRO). Under this bill, a personal services entity is an entity established by a registered representative to receive compensation for services from the registered representative's broker. A registered representative works for the broker (deemed an associated person of the broker) and is registered with the appropriate SRO. Under this bill, a personal services entity is not considered a broker for SEC regulatory purposes when receiving compensation from the registered representative's broker on the registered representative's behalf if the broker approves and maintains records of the payment, the personal services entity does not hold itself out as a broker or otherwise engage in broker or dealer activity, the broker exercises adequate supervision and control over the registered representative, the broker and personal services entity have a written agreement regarding their relationship and compensation arrangement, and the personal services entity is owned by the representative, the representative's family, or other similar entities. The personal services entity must maintain certain records and make them available to the SEC and the appropriate SRO upon request.

Congressional Research Service summary (Introduced in House), quoted unchanged (nonpartisan). Read the source.

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What does this mean? (plain words)

Official text

Clarity for Compensation Act

Source: Congressional Research Service summary (Introduced in House)

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Officials and money

Sponsor: Rep. Nunn, Zachary [R-IA-3] · 12 cosponsors

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Words on this page, explained (3)
Appropriation
Money a legislature sets aside by law for a specific purpose. Government agencies may spend public money only as it has been appropriated.
Bill
A proposed law. It becomes law only if it passes the legislature and is signed by the president or governor (or a veto is overridden).
Securities
Financial investments that can be bought and sold, such as stocks and bonds.

Plain meanings written from linked sources. All words.

Sources

Record fed-us-cong119-hr7187 · catalog fed-us-congress-bills-cong119 · updated 2026-11-03 by psicol fed-bills