SEC Launches Task Force on Securities Fraud by Foreign Companies

The US Securities and Exchange Commission is setting up a new unit to focus on securities fraud by foreign companies, one of the first signals of the regulator’s enforcement priorities under the Trump administration.

The new group, called the cross-border task force, will investigate companies from “foreign jurisdictions, such as China, where governmental control and other factors pose unique investor risks,” the SEC said Friday. In addition to the companies themselves, the unit will also look at their auditors and underwriters.

“We welcome companies from around the world seeking access to the US capital markets,” SEC Chairman Paul Atkins ...