The U.S. Securities and Exchange Commission, along with the Financial Industry Regulatory Authority and New York Stock Exchange Regulation, Inc., will conduct examinations aimed at the prevention of the intentional spread of false information intended to manipulate securities prices.
The SEC announced Sunday said that examiners will focus on the supervisory and compliance controls that controls that broker-dealers and investment advisers must have to prevent violations of the securities laws, including market manipulation. Specifically, they will look at whether these controls are designed to prevent the intentional creation or spreading of false information intended to affect securities prices, or other potentially manipulative conduct.
“The examinations we are undertaking with FINRA and NYSE Regulation are aimed at ensuring that investors continue to get reliable, accurate information about public companies in the marketplace,” said SEC chairman Christopher Cox, in a release. “They will also provide an opportunity to double-check that broker-dealers and investment advisers have appropriate training for their employees and sturdy controls in place to prevent intentionally false information from harming investors.”
U.S. regulators to investigate market manipulation caused by spreading rumours
Prevention effort augments SEC’s ongoing enforcement investigations
- By: James Langton
- July 14, 2008 July 14, 2008
- 07:45