Written by Robert Quinn
Founder & CEO
On February 10, the SEC proposed amended rules to its successful whistleblower program which has seen awards in excess of $1.2 billion since inception. Acknowledging the importance of whistleblowers in providing information to assist the SEC in their ability to bring successful enforcement actions, the new rules further encourage more whistleblowers to come forward. 2021 was a year that saw the SEC receive more tips than any other year and award more compensation than all previous years combined.
The first proposed rule would remove technical impediments and make it easier for the SEC to award higher compensation. The second proposed rule would restrict the SEC’s discretion to lower a monetary award and only allow the regulator the ability to increase the award.
These amendments send a clear message to the market that firms face an increased risk of getting caught for inappropriate behavior.
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