The Investigations into Market Rumors: the SEC, FINRA and NYSE Are on the Street
07/17/2008U.S. Securities and Exchange Commission (SEC) announced that it and other securities regulators will immediately conduct examinations aimed at the prevention of the intentional spread of false information intended to manipulate securities prices. Regulated entities will be subject to examinations, and both regulated and unregulated entities will be subject to SEC enforcement investigations.
Market participants should review their internal controls and procedures with regard to the aforementioned activity. They should be aware that intentionally spreading false rumors or engaging in collusive activity to affect the financial condition of an issuer will be vigorously and aggressively investigated. Individuals and entities engaging in such unlawful activity may be subject to civil as well as criminal prosecution.
