The U.S. SEC forms "Cross-Border Task Force": Targeting securities fraud of foreign companies, strengthening oversight of auditing and underwriting.

The US Securities and Exchange Commission (SEC) is establishing a new division focused on managing securities fraud by foreign companies, marking one of the first major enforcement priorities of the agency under the Trump administration. This newly established special task force will also investigate companies from foreign jurisdictions, as well as their auditors and underwriters. The SEC announced on Friday that this group, named the "cross-border task force," will investigate companies from "foreign jurisdictions where government control and other factors pose unique risks to investors." It is reported that in addition to the companies themselves, this new division will also have the authority to examine their audit-related teams and underwriters. "We welcome companies from around the world seeking access to US capital markets," said SEC Chairman Paul Atkins in a statement. "But we will not tolerate bad actors seeking to use international boundaries to frustrate and evade protections for US investors - whether they be companies, intermediaries, gatekeepers, or speculative traders." The SEC pointed out some risks targeting US investors, such as some foreign companies engaging in "pump-and-dump" schemes and extreme market fluctuations leading to so-called "ramp-and-dumps." Atkins appointed military judge Margaret "Meg" Ryan to lead the SEC's enforcement division in August. This announcement from the SEC follows Nasdaq Inc.'s announcement on September 3 that it will reform listing rules, aimed at preventing severe market fluctuations caused by Chinese companies listed on the exchange. The exchange also hopes to expedite trading halts and delisting procedures. Atkins stated that he has directed other divisions within the SEC to propose more ways to protect US investors, including new disclosure guidelines. The agency also sought early public input in June on whether existing rules regarding foreign private issuers should be reevaluated, which allow foreign companies listed in the US to enjoy certain exemptions in disclosure and reporting requirements.