Nissan SEC Inquiry Highlights Uncertainty for Non-U.S. Issuers of ADRs
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- The reported SEC inquiry announced this week into alleged disclosure violations at Nissan Motor Co., Ltd. is an unusual instance where the SEC has opened an inquiry involving a company without securities listed in the United States.
- The announcement of the inquiry-which does not necessarily indicate that a formal investigation will be launched by the SEC or that regulatory sanctions will result-comes at a time when the jurisdictional reach of the U.S. securities laws is being tested for non-U.S. issuers who do not have securities listed on a U.S. exchange but have securities traded over-the-counter.