Can foreign investments affect a clearance?

2019-11-22T22:01:45-05:00

I invested in a Chinese Stock(pulled out of all of those stocks once i realized it could affect my clearance), and i have an active Top Secret Clearance. I am talking with my SSO Monday to report my investments, but I am worried it could affect my clearance status

Response by SMSgt Thor Merich made Nov 22 at 2019 10:09 PM

2019-11-22T22:09:51-05:00

It shouldn’t affect it. But it’s good that you are reporting it, just in case.

Response by LT Brad McInnis made Nov 22 at 2019 10:13 PM

2019-11-22T22:13:09-05:00

No expert here, but it is always better to report it. It shows good faith. With the way funds are managed these days, I think there is probably only a couple that don't have Chinese companies in them, in one form or another, so you should be fine.

Response by SFC Private RallyPoint Member made Nov 23 at 2019 12:39 AM

2019-11-23T00:39:54-05:00

As it was explained to me, it only affects your clearance if you still have them. You would have to liquidate your assets in certain countries before being granted a clearance here

Response by SGT Private RallyPoint Member made Nov 23 at 2019 8:36 AM

2019-11-23T08:36:00-05:00

With our markets being what they are and with over 400 Chinese companies operating with our exchanges I would think bailing would be a plus. The real threat is all of the managed funds that are knowingly invested in these companies. If your SSO says it will have an effect then take it to the next level for people in charge often provide information by assumption rather than fact.

Response by SFC Casey O'Mally made Nov 23 at 2019 1:00 PM

2019-11-23T13:00:10-05:00

If you have divested, ANS it was a one time thing, you should be fine. ESPECIALLY since you are self reporting.
The concern, from a clearance perspective, is that a foreign investment may cause you to use your government position to act (or fail to act) in a way which would benefit your foreign company. Even if it doesn't harm America, aiding a foreign company, especially aiding a company from an adversarial country, is a no-no (with the obvious exceptions of official acts, like providing military aid).
A couple of folks have mentioned how heavily china is invested in American comoanies and how many portfolios include Chinese assets. Generally speaking, these portfolios will be fine. The standard investor is unaware of the exact composition of a portfolio, so is unable to make military decisions based on aiding his or her investments. Likewise, investing in American companies with forsign investors/partners is ALSO usually OK, because the standard incestor is also unaware of who ELSE owns stock in that Company.

From both a clearance AND a financial standpoint, your best bet is diversification.* Investing in a broad portfolio hedges your financial bets, but it also alleviates most concern that you would act (or fail to act) in order to aid a specific company (because you are invested in multiple companies and helping one may hurt another, AND because your individual investment in any one company or commodity is so small that working to boost that investment would see minimal returns at an individual level.)

*I am not a financial advisor, and any advice given is offered only as a person with their eyes and ears open and not as an expert or prognosticators.

Response by LTC Private RallyPoint Member made Dec 2 at 2019 2:41 AM

2019-12-02T02:41:19-05:00

Having Foreign stock should have no effect on your clearance. Disclose it and the worse case is you would be told not to hold it. I only own diversified mutual funds and index funds but I have never even been told that you can't own foreign stock. I have had a TS/SCI for almost 10 years and I have to report my finances every year on an OGE 450 due to working in Acquisitions and you have nothing to worry about, by reporting this you'll get the right answer and your clearance is not at all in jeopardy.