Changes are necessary for the SEC’s whistleblower program if its record of success is to continue, argues Phillips & Cohen partner Erika Kelton in a Bloomberg Law article published for the 10th anniversary of the Dodd-Frank Act’s enactment.
Ten years after the enactment of the Dodd-Frank Act, the public benefits of the resulting Securities and Exchange Commission whistleblower reward and protection program are undeniable. Yet, despite the program’s great success, changes are needed to ensure it becomes more effective in the next 10 years.
Congress should support a bipartisan bill introduced last year by Sen. Charles Grassley (R-Iowa) that offers two important legislative fixes: protection from job retaliation for whistleblowers who report concerns about possible securities or commodity law violations to a supervisor or other relevant individual, and deadlines for the SEC and the Commodity Futures Trading Commission to issue initial award determinations.
Also needed is a mechanism that would enhance the public-private partnership between the SEC, CFTC, and the whistlebower’s team, much like the False Claims Act qui tam provision.
Read the entire article, “INSIGHT: Dodd-Frank’s 10th Anniversary – Time for SEC Whistleblower Changes,” on Bloomberg Law’s website.