Finra Probes Broker-Dealers as Regulators Target Pump-and-Dumps

The Financial Industry Regulatory Authority is probing broker-dealer firms involved in taking small foreign companies public, the latest effort by a regulator to crack down on pump-and-dump schemes.

The targeted sweep, posted on Finra’s website Thursday, compels firms that have served as underwriters, bookrunners, or placement agents in small-cap offerings for companies with operations overseas to hand over several key pieces of information to the Wall Street regulator.

Finra seeks details about written supervisory procedures, compliance policies, training materials and due diligence processes of offerings conducted between between January 2023 and September 2025. The regulator also want firms to ...