#What is the newly formed Cross-Border Task Force by the SEC?
The SEC has launched a task force specifically designed to tackle fraud activities involving foreign-based companies. This initiative aims to reinforce regulatory oversight for firms operating outside US borders, particularly those committing securities violations. The task force will focus on schemes such as pump-and-dump tactics, which illegally inflate stock prices before the perpetrators sell their shares at a profit.
#How will the task force operate?
This specialized unit will not only investigate foreign entities but will also closely examine the auditors and underwriters that facilitate their access to US markets. By scrutinizing these relationships, the task force aims to uncover fraudulent practices that may harm investors. The SEC's proactive approach demonstrates its commitment to protecting investors from malicious activities that exploit jurisdictional boundaries.
#What stance has the SEC taken against misconduct?
In remarks about the task force, SEC Chairman underscored the commission's zero-tolerance policy towards individuals and organizations that seek to evade accountability through cross-border operations. The SEC's Enforcement Director has pointed out that the task force will enhance collaboration among various stakeholders, pooling resources and expertise to detect and combat international manipulation of the markets. Importantly, the SEC is also considering the introduction of new disclosure rules to further strengthen investor protections.