05/22/2019 | Press release | Distributed by Public on 05/23/2019 19:05
Menendez Raises Questions to the Security Exchange Commission on Foreign Investments in U.S. Public Companies
Menendez Raises Questions to the Security Exchange Commission on Foreign Investments in U.S. Public CompaniesWednesday, May 22, 2019
WASHINGTON, D.C. - U.S. Senator Bob Menendez (D-N.J.), a Senior Member of the Banking Committee today sent a letter to Jay Clayton, Chair of the Securities and Exchange Commission (SEC) to raise questions and request information about foreign investments in U.S. public companies. A recent study suggests foreign holdings of equities increased significantly in 2018 for the second year in a row. Section 13(d) of the Security Exchange Act of 1934 requires investors with five percent of an issuer's equity securities to report certain identifying information to the SEC.
'As foreign holdings of U.S. securities, and in particular equities, have increased over the last ten years, so too have concerns that certain malign foreign investors may seek to undermine our capital markets by taking stakes in powerful U.S. companies, including in the media and technology sectors,' wrote the Senator. 'In particular, I am concerned that certain foreign investors may seek to undermine our democratic institutions through ownership stakes in the very media and technology companies responsible for delivering to the American people unbiased and objective reporting of current events.'
Before outlining a series of questions to the SEC on specific actions to monitor and investigate foreign investors' compliance with Section 13(d), the Senator added 'given the evolving threats the U.S. faces from actors across the globe, I am concerned that certain foreign investors may not be complying with Section 13(d)'s disclosure requirements or appropriately identifying coordinated group activity under Section 13(d).'
The full text of the letter can be found here and below.