WASHINGTON — The Securities and Exchange Commission said 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.
The securities laws require that broker-dealers and investment advisers have supervisory and compliance controls to prevent violations of the securities laws, including market manipulation, SEC said. Examiners will focus on these controls and whether they are reasonably designed to prevent the intentional creation or spreading of false information intended to affect securities prices, or other potentially manipulative conduct.
The examinations will be conducted by the SEC’s Office of Compliance Inspections and Examinations, as well as the Financial Industry Regulatory Authority and New York Stock Exchange Regulation Inc.
“These examinations are in addition to the commission’s enforcement investigations into alleged intentional manipulation of securities prices through rumor-mongering and abusive short selling that are already underway,” SEC said.