SEC Whistleblower Protection RulesSection 922 of the Dodd-Frank Act and the SEC Whistleblower Protection Rules (the “Rules”) issued in May 2011 provide a set of incentives and protections for individuals who choose to make reports to the SEC. From the SEC whistleblower program’s inception in 2011 through FY 2020, the agency awarded a total of about $562M to 106 whistleblowers. [21]Recent SEC Enforcement Activity Related to Prospective Whistleblower ActivitySince 2015, the SEC has brought about a dozen actions against companies for alleged violations of Rule 21F-17. Key TakeawaysThe risks presented by not adequately addressing internal whistleblower complaints, or the prospect thereof, are far-reaching. Foster an internal culture of compliance, ethics, and support for internal reporting.

Source: Wall Street Journal August 15, 2023 17:58 UTC