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.