Ethics | Governance |
NEWS FOR WHISTLEBLOWERSBy
The Securities & Exchange Commission (SEC) has issued an interpretive rule that clarifies parts of its Whistleblower Program created by the Dodd-Frank Act. Under the program, individuals who volunteer information to a regulatory authority that leads to the uncovering of fraud are entitled to 10%-30% of the recovered amount. And there are protections in place to prohibit “retaliation by employers against employees who provide [the SEC] with information about possible securities violations,” according to the SEC’s website.
The new interpretation better explains who qualifies as a whistleblower and clarifies the circumstances under which whistleblowers are protected from retaliation. There was confusion over whether a whistleblower would be protected from retaliation if he or she had first reported suspected fraud to someone inside the company—such as a compliance official—instead of the SEC. In the new rule, the SEC states: “Under our interpretation, an individual who reports internally and suffers employment retaliation will be no less protected than an individual who comes immediately to the Commission.”
Read the full interpretive rule at http://1.usa.gov/1Ljm3LV.