WASHINGTON—Sen. John Kennedy (R-La.) and a trade group that represents small and regional financial services companies are urging U.S. regulators to act swiftly to fully implement a Trump-era law that requires foreign companies trading on American exchanges to meet U.S. accounting standards.
On Dec. 18 last year, then-President Donald Trump signed into law the Holding Foreign Companies Accountable Act (HFCA Act) to protect investors from foreign companies that don’t follow U.S. audit standards. Congress unanimously passed the measure to mainly focus on Chinese companies that have come under intense scrutiny over fraudulent accounting practices.
