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

HR 3388, the PELOSI Act, prohibits members of Congress and their spouses from holding, purchasing, or selling most financial investments (like stocks, bonds, or derivatives) during their term in office. It requires them to divest existing holdings within 180 days of taking office or enacting the law, with exceptions for diversified mutual funds, ETFs, and U.S. Treasury securities. Members must annually certify compliance to ethics committees, which can enforce penalties including disgorgement of profits, fines up to 10% of the investment value, and public disclosure of violations. The law aims to prevent conflicts of interest by restricting financial holdings that could create insider trading concerns.