SEC Adopts Final Dodd-Frank Whistleblower Rules

more+
less-

Last month, the Securities and Exchange Commission adopted final rules to implement the whistleblower provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). Dodd-Frank created a new Section 21F of the Securities Exchange Act of 1934 (the “Exchange Act”), which establishes a whistleblower program requiring the SEC to pay an award of between 10 and 30 percent of monetary sanctions aggregating at least $1,000,000 to eligible whistleblowers who voluntarily provide the SEC with original information about a violation of the federal securities laws. Section 21F of the Exchange Act also prohibits retaliation by employers against individuals who provide the SEC with information about possible securities violations. Significantly, despite many commentators’ objections, the final rules do not require whistleblowers to report potential securities law violations through a company’s internal compliance program as a prerequisite to an award. The final rules, which apply to both public and private companies, will be effective on August 12, 2011.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

more+
less-

Womble Carlyle Sandridge & Rice, LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×