The employee strikes back

Author: | Published: 11 Jul 2011

On May 25 2011, in a 3-2 vote, the US Securities and Exchange Commission (SEC) approved its final rules (US rules) to implement the whistleblower award program of Section 21F of the Securities Exchange Act of 1934, which was added by Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The US rules establish the standards and procedures the SEC will apply in awarding whistleblowers monetary compensation for providing tips about possible securities law violations (including violations of the Foreign Corrupt Practices Act) that lead to successful SEC enforcement actions and make definitions which set the contours for protections of whistleblowers under the Dodd-Frank Act's anti-retaliation provisions.

Under the US rules, a whistleblower who voluntarily provides the SEC with original information that leads to a successful enforcement by the SEC that results in monetary sanctions of more than $1 million arising out of the same core facts...