If you’re a CEO or CFO of a foreign microcap listed in the US and the air feels different…that’s because it is!
The SEC has made an aggressive move announcing their new Cross Border Task Force. This isn’t just another bureaucratic layer; it’s a declaration stating foreign issuers are now a priority target, and not just broadly. We’re talking named jurisdictions like China, public service providers like auditors & underwriters, and even behaviors like pump and dump schemes called out directly.
If your company is based in Hong Kong or Singapore you’re not off the radar if you’re using pass throughs. If you’re relying on non-US placement for your D&O your coverage know that it often doesn’t specifically name US litigation as covered and many times it specifically excludes this exposure. Non-US D&O could very likely leave you in a compromised position when it counts most.
Here’s what’s happening now: The SEC is layering enforcement teams across departments. They’re pulling in folks from Divisions of Corp Fin, Examinations, and International Affairs and pairing them off with enforcement attorneys and market analysts. Bottomline…the SEC is not messing around! These task force teams will be robust, the probing will be deep, and the intent is obvious; this isn’t about protecting markets from a few bad actors, it’s about aggressively going after anything cross-border that smells wrong.
So where does that leave your leadership if your D&O policy is drafted locally in HK or via an offshore broker who doesn’t live and breathe US securities law? The chance it protects you in an actual US enforcement action are slim. We’ve seen too many .boardrooms fractured, leaving directors scrambling for personal counsel because the policy didn’t respond.
It doesn’t have to be that way! Let’s talk numbers because the stats are brutal:
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1 in 12 foreign issuers listed in the US faces a securities class action within three years of IPO.
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The median settlement is $13M — NOT including defense costs.
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China alone represented 16% of new filings last year and 2025 already has multiple cross-border investigations in the pipeline.
Pricing is on the rise for foreign issuer D&O. I was on a call with London underwriters last week fighting for a client on price, and while referencing a similar account out of APAC that we wrote just a month ago they underwriter stopped me and said, “Chaz, I get where you are coming from, but the SEC’s new task force looking at foreign issuers has the market worried and they are moving up in price.” I got him to come down 9%, which was still a 5% increase from where things were just weeks ago.
You don’t need the cheapest policy, you need the right one. You need a partner who fights for proper policy wording along with price in the London, Bermuda, and US markets…That’s us, Churchwell Insurance!
We help foreign issuers navigate the risk that comes with US exchange. Trust us to build D&O programs that defend when it matters!
This new SEC task force isn’t theoretical, it’s operational. Let’s connect asap for a coverage review.
Citations:
“SEC launches Cross‑Border Task Force to combat fraud,” Dodd‑Frank Update, Sept. 9, 2025.
https://www.doddfrankupdate.com/dfu/articlesdfu/sec-launches-crossborder-task-force-to-combat-frau-95410.aspx
“SEC Forms Task Force to Combat Cross‑Border Fraud,” D&O Diary, Sept. 10, 2025.
https://www.dandodiary.com/2025/09/articles/securities-enforcement/sec-forms-task-force-to-combat-cross-border-fraud/
“SEC Launches Cross‑Border Task Force,” DLA Piper, Sept. 9, 2025.
https://www.dlapiper.com/en-us/insights/publications/2025/09/sec-launches-cross-border-task-force
