Blowing Your Own Whistle: Trumpeting Your Whistleblower Policies in Response to the SEC's New Whistleblower Program


The U.S. Securities and Exchange Commission (“SEC”) has issued final rules (the “Rules”) implementing the whistleblower incentive program (the “Program”) pursuant to Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”), which added Section 21F to the Securities Exchange Act of 1934 (the “Exchange Act”).1

The Program is designed to encourage individuals to voluntarily report possible securities law violations to the SEC by offering cash rewards of between 10% and 30% of monetary sanctions exceeding $1 million. It also builds upon the Sarbanes-Oxley Act of 2002 (“SOX”) and provides additional protections to whistleblowers. Dodd-Frank broadens SOX’s anti-retaliation provisions by protecting tipsters of any company subject to the securities laws rather than simply employees of publicly-traded companies, permitting direct causes of action in lieu of administrative hearings, doubling the statute of limitations and increasing possible damages awards.

Many different types of companies are subject to the federal securities laws and must be aware of the Program and its potential effects. Any company subject to the SEC’s jurisdiction may want to consider revisiting its internal reporting and compliance policies and procedures in response to the Program.

Please see full article below for more information.

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

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Eversheds Sutherland (US) LLP | Attorney Advertising

Written by:


Eversheds Sutherland (US) LLP on:

Readers' Choice 2017
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.