The Securities and Exchange Commission announced it had formed a cross-border fraud task force that will enhance the Division of Enforcement’s efforts to protect U.S. investors.
The Cross-Border Task Force will investigate potential U.S. securities law violations related to foreign-based companies. The task force will also focus on enforcement efforts on gatekeepers, particularly auditors and underwriters, that help companies access U.S. capital markets. And, the SEC said, the task force will examine potential securities law violations related to companies from foreign jurisdictions where governmental control and other factors pose unique investor risks, like China.
“We welcome companies from around the world seeking access to the U.S. capital markets,” SEC Chairman Paul S. Atkins said. “But we will not tolerate bad actors – whether companies, intermediaries, gatekeepers or exploitative traders – that attempt to use international borders to frustrate and avoid U.S. investor protections. This new task force will consolidate SEC investigative efforts and allow the SEC to use every available tool to combat transnational fraud.”
Atkins said he had directed the staff in other SEC divisions and offices, include the Divisions of Corporation Finance, Examinations, Economic and Risk Analysis, and Trading and Markets, as well as the Office of International Affairs, to consider other actions that would protect U.S. investors, including new guidance on disclosure and any further rule changes.
“The Cross-Border Task Force will leverage the Division of Enforcement’s resources and expertise to combat international market manipulation and fraud,” Division of Enforcement Director Margaret A. Ryan said. “We are pleased to be part of this critical effort to enforce the federal securities laws and protect U.S. investors.”