Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act

The Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act aims to prevent conflicts of interest by prohibiting Members of Congress and their spouses from engaging in transactions involving certain financial instruments. This includes investments in securities, security futures, commodities, and synthetic economic interests like derivatives. The prohibition applies throughout the Member's term of service, requiring divestment of existing holdings within 180 days of the bill's enactment or the start of their service. However, the bill provides specific exclusions for diversified mutual funds , diversified exchange-traded funds , and United States Treasury bills, notes, or bonds , allowing Members to hold these less speculative assets. Compensation from a spouse's or dependent child's primary occupation is also excluded. Non-compliance with these prohibitions can result in the disgorgement of any profits from illicit transactions to the U.S. Treasury and the assessment of civil fines by the applicable supervising ethics committee. To ensure accountability, Members of Congress must annually certify their compliance, with these certifications made publicly available. Supervising ethics committees are granted authority to implement and enforce the subchapter, including issuing rules, providing guidance, and assessing civil fines. These fines, which can be appealed, are levied after notice and an opportunity for a hearing, with continuing non-compliance incurring a penalty of 10 percent of the value of non-divested instruments every 30 days. Furthermore, the Government Accountability Office is mandated to audit compliance within two years of the Act's enactment.