Key Focus Areas:
- Market Manipulation: Investigating pump-and-dump and ramp-and-dump schemes involving foreign-based companies.
- Gatekeeper Oversight: Focusing on auditors and underwriters that help these companies access U.S. capital markets.
- Foreign Jurisdictions: Examining potential securities law violations related to companies from countries like China, where governmental control poses unique investor risks.
SEC's Goals:
- Protect U.S. investors from international market manipulation and fraud.
- Balance openness to foreign companies with strict enforcement of investor protections.
- Consider new disclosure guidance and potential rule changes to enhance investor safeguards.
Task Force Leadership:
- SEC Chairman Paul S. Atkins emphasized the importance of balancing openness with enforcement, stating that the SEC welcomes foreign companies but won't tolerate bad actors.
- Division of Enforcement Director Margaret A. Ryan highlighted the task force's role in leveraging resources and expertise to combat international market manipulation and fraud ¹.
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