On September 5th, the SEC announced the establishment of the Cross-Border Task Force that aims to further the Division of Enforcement’s endeavors to detect and combat cross-border fraud harming U.S. investors. The Division will direct its efforts toward companies, intermediaries, exploitative traders that try to use international borders to hinder and avoid U.S. investor protections.
The task force plans to use the Division of Enforcement’s resources and experience to counteract both fraud and international market manipulation by:
- centering on investigating potential U.S. federal securities law violations, such as “pump-and-dump" and "ramp-and-dump" schemes
- placing special emphasis on enforcement efforts on gatekeepers, particularly auditors and underwriters, which help these companies access the U.S. capital markets
- examining potential securities law violations related to companies from foreign jurisdictions (for example, China) where governmental control and other factors pose unique investor risk
Source:
Updates to the Financial Reporting Manual (sec.gov)
