Rules recently adopted by the U.S. Securities and Exchange Commission define the scope and procedures of the whistleblower provisions under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

On May 25, 2011, the U.S. Securities and Exchange Commission (SEC), in a 3-2 split vote, adopted the final rules implementing the whistleblower provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). Section 922 of Dodd-Frank authorized the SEC to reward whistleblowers for reporting violations of federal securities laws to the government. Specifically, eligible persons who voluntarily provide the SEC with original information leading to an enforcement action with monetary sanctions greater than $1 million may receive 10 percent to 30 percent of the total sanctions collected. Dodd-Frank also protects whistleblowers by providing them with a cause of action in cases where employers discharge or retaliate against them for reporting information (either internally or to the government) of possible securities law violations, and provides relief in the form of reinstatement, double-back pay and attorney fees. Unlike monetary awards, retaliation protections apply whether or not a successful enforcement action ultimately results.