SEC Approves Whistleblower Proposed Rule, Would Affect FCPA Too
On November 3, 2010, the Securities and Exchange Commission voted unanimously on a proposed rule to establish a whistleblower program to reward individuals who provide the agency with high-quality tips that lead to successful enforcement actions.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Proposed Rule Would Establish Procedures for Whistleblowing, Claiming Award
The SEC states its proposed rule under the Dodd-Frank Wall Street Reform and Consumer Protection Act maps out a procedure for would-be whistleblowers to provide information to the agency. It also conveys how would-be whistleblowers can qualify for an award through a transparent process that provides them a meaningful opportunity to assert their claim to an award.
To be considered for an award, a whistleblower must voluntarily provide the SEC with original information about a violation of the federal securities laws that leads to the successful enforcement by the SEC of a federal court or administrative action in which the SEC obtains monetary sanctions totaling more than $1 million.
Includes FCPA violations. Among other things, the proposed rule would establish procedures for whistleblowers to report possible Foreign Corrupt Practices Act (FCPA) violations.
Written comments on the proposed rule are due by December 17, 2010.
(On July 21, 2010, the President signed into law the conference version of H.R. 4173, the financial reform bill, in order to impose new requirements on companies that use “conflict minerals” and provide new whistleblower rewards for securities violations, including violations of the FCPA. See ITT's Online Archives or 07/22/10 news, 10072230, for BP summary of this new law.)
Proposed rule available here.