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H.R. 7187 119th Congress House

Clarity for Compensation Act

Official title: 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.

Introduced: January 21, 2026 Introduced by: Zachary Nunn Republican · Iowa See on congress.gov
Finance and Financial Sector Corporate finance and managementFinancial services and investmentsLicensing and registrationsSecuritiesWages and earnings
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 Everywhere this bill has been 6 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Sep 1, 2026
Placed on the Union Calendar, Calendar No. 691.
Sep 1, 2026
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-791.
Jun 30, 2026
Ordered to be Reported (Amended) by the Yeas and Nays: 51 - 0.
Jun 30, 2026
Committee Consideration and Mark-up Session Held
Jan 21, 2026
Referred to the House Committee on Financial Services.
Jan 21, 2026
Introduced in House
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What's happening now September 1, 2026

Placed on the Union Calendar, Calendar No. 691.

 Plain-English summary Congressional Research Service

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.

 Hearings & markups 2
 Bill text 2 versions

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
 Lobbying activity 19

Registered lobbyists who named this bill in their disclosure filings. Source: federal Lobbying Disclosure Act filings.

Bodies those filers lobbied

A filing lists the bills it worked on and the parts of government it contacted in separate sections, so these are the bodies those filers named anywhere in the filing, not a per-bill breakdown.

See all 19 filings →
 Cosponsors 12
All 12 Democratic 4 Republican 8
D
Kennedy, Timothy M.
New York · Jul 6, 2026
 R
Moran, Nathaniel
Texas · Jul 6, 2026
 R
De La Cruz, Monica
Texas · Jun 30, 2026
 R
Kim, Young
California · Jun 29, 2026
 R
Timmons, William R.
South Carolina · Jun 25, 2026
 R
Moore, Tim
North Carolina · Jun 24, 2026
 D
McBride, Sarah
Delaware · Jun 18, 2026
 R
Garbarino, Andrew R.
New York · Jun 10, 2026
 R
Stutzman, Marlin A.
Indiana · Jun 8, 2026
 R
Lawler, Michael
New York · Jun 2, 2026
 D
Pettersen, Brittany
Colorado · Apr 14, 2026
 D
Meeks, Gregory W.
New York · Jan 21, 2026
Cite this page click to expand
APA
U.S. Congress. (2026). H.R. 7187: Clarity for Compensation Act. 119th Congress. Open America. https://openamerica.io/bill/119-HR-7187/
MLA
"H.R. 7187: Clarity for Compensation Act." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-HR-7187/.
Bluebook (legal)
H.R. 7187, 119th Cong. (2026), https://openamerica.io/bill/119-HR-7187/.
Markdown link
[H.R. 7187: Clarity for Compensation Act](https://openamerica.io/bill/119-HR-7187/)
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