H.R.7187

The Clarity for Compensation Act amends the Securities Exchange Act of 1934 to exempt certain personal services entities from being considered.

The Clarity for Compensation Act amends the Securities Exchange Act of 1934 to exempt a personal services entity from being considered a broker if it is owned by a registered representative or their immediate family members. This exemption applies if the entity does not engage in broker or dealer activity, does not hold itself out as a broker, and maintains certain records and agreements with the broker. The broker must also maintain supervision and control over the registered representative. The exemption takes effect 180 days after the enactment of the Act.