In a statement, SEC Chairman Jay Clayton said, “I would like to thank the dedicated staff in the Division of Enforcement for shining a light on, and bringing strong actions against, the abuse of the ADR pre-release process…The blatant misconduct identified in these 15 actions had real effects on market pricing. The work of our Enforcement Division should have lasting benefits for retail investors who use ADRs as a way to invest in foreign companies.”
On the other hand, Stephanie Avakian, Co-Director of the Division of Enforcement, commented, “The practices uncovered in these actions presented significant risks to the integrity of the ADR market. U.S. investors who purchase ADRs are entitled to the same protections as investors in any other securities available in U.S. markets.”
