August 31, 2022
The SEC Adopts New Amendments to its Whistleblower Program
What happened?
On August 26, 2022, the Securities and Exchange Commission (SEC) adopted two amendments to the rules guiding its whistleblower program, according to a press release from the SEC. The new amendments further specify the circumstances in which a whistleblower can receive an award from the Commission as opposed to receiving an award from the other agency’s whistleblower program.
The first rule change allows the Commission to pay whistleblowers for their information and assistance in connection with non-SEC actions in additional circumstances. The second rule affirms the Commission’s authority to consider the dollar amount of a potential award for the limited purpose of increasing an award but not to lower an award.
“In 2010, Congress under the Dodd-Frank Act directed the SEC to establish a whistleblower program, which to date has greatly aided the Commission’s work to protect investors,” said SEC Chair Gary Gensler. “Today’s amendments enact two changes to help enhance the whistleblower program. The first amendment expands the circumstances in which a whistleblower who assisted in a related action can receive an award from the Commission for that related action rather than from the other agency’s whistleblower program. Under the second amendment, when the Commission considers the size of the would-be award as grounds to change the award amount, it can do so only to increase the award, and not to decrease it. I think that these rules will strengthen our whistleblower program. That helps protect investors.”
The whistleblower rule amendments will become effective 30 days after publication in the Federal Register.
To read the full press release, click here.
What does this mean for me?
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