Dodd-Frank and Bribery Act: US whistleblowing to hit UK firms

Author: Gemma Varriale | Published: 12 Jan 2012

It’s only a matter of time before financial incentives to report US securities and commodities law violations start impacting the UK market, lawyers have warned.

Under Dodd Frank’s whistleblower provisions, bounties are offered to those who provide the US Securities and Exchange Commission (SEC) with original information that leads to successful prosecutions.

UK firms need to be aware of the extraterritorial reach of these provisions, said Charlie Monteith of White & Case in London. Especially since 80% of Department of Justice (Doj) settlements have been against institutions based outside of the US.

"The new legislation means that whistleblowers will become very incentivised to report to the SEC," said Lucy Frew of Gide Loyrette Nouel in London. "That’s going to...