Clarity for Compensation Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 7187 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 7187 To amend the Securities Exchange Act of 1934 to provide an exemption from the definition of a broker for a certain registered representative-owned personal services entity, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES January 21, 2026 Mr. Nunn of Iowa (for himself and Mr. Meeks) introduced the following bill; which was referred to the Committee on Financial Services _______________________________________________________________________ A BILL To amend the Securities Exchange Act of 1934 to provide an exemption from the definition of a broker for a certain registered representative-owned personal services entity, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Clarity for Compensation Act''. SEC. 2. BROKER DEFINITION EXCEPTION FOR REGISTERED REPRESENTATIVE-OWNED PERSONAL SERVICES ENTITY. (a) In General.--Section 3(a)(4) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(4)) is amended by adding at the end the following: ``(G) Exception for registered representative-owned personal services entity.-- ``(i) In general.--A personal services entity shall not be considered a broker solely by reason of receiving compensation on behalf of a registered representative from that representative's broker at the direction of such representative, if-- ``(I) the broker instructs or otherwise approves the amount and timing of the payment and maintains records regarding the payment made; ``(II) the personal services entity does not hold itself out as a broker; ``(III) the personal services entity does not engage in broker or dealer activity, other than the receipt of compensation on behalf of the