In 2010 July, the Dodd-Frank Wall Street Reform and Protection Act that is also known as Dodd-Frank formed the SEC Whistleblower Reward Program. If offers the whistleblowers with a strong financial inducement, and considerable protection, for exposure of evil deeds to the SEC.
SEC Whistle Awards
Under the plan, the SEC will give out awards to whistleblowers that provide unique information that can lead to SEC enforcement measures with total civil fines more than 1 million US dollars. A whistleblower might get an award of between 10-30% of the total sanctions imposed.
Original information will lead to a successful enforcement measure if either:
• The information gathered caused the employee to start an investigation, revive investigation, or inquiry into various conduct as part of the existing investigation. The Commission brought a successful measure based in entire or in a portion on conducted that was the topic of the original information.
• The conduct was ready under assessment or investigation, and the initial information considerably contributed to the success of the action.
In calculating the percentage, the SEC ponders the facts and circumstances of every case. For instance, positive factors might comprise the importance of the information, the level of assistance offered by the whistleblower and the SEC whistleblower lawyer, and the law enforcement’s interests at stake.
From the time the law was made effective, the SEC has rewarded more than 54 million US dollars to 22 whistleblowers. During the 2015 financial year alone, the SEC paid 37 US dollars to 8 whistleblowers. Most remarkably, 30 million US dollars award was given to a whistleblower that provided original information that led to a successful enforcement measure. Currently, this is the top award given to a whistleblower.
Anonymous reporting to the SEC
A whistleblower is allowed to present information anonymously to the SEC If represented by the counsel. A whistleblower might remain unidentified, even to the SEC, up to the time the award will be issued. On the other hand, the identity of the whistleblower is not made accessible to the public.
Protection against whistleblower retaliation
Whistleblowers are also given considerable protection against retaliation. Particularly, an employer does not have the power to suspend, relegate, intimidate, and stalk, openly or indirectly, or in any approach of discrimination to a whistleblower because of reporting wrongdoing. If the employer revenges because the Whistlerblower has reported, the law will offer a considerable amnesty.