Thursday, July 15, 2010
Thanks to Jason Zuckerman at the Whistleblower Law Blog for heads up on this informative post: Dodd-Frank Bill Provides Robust Whistleblower Protections.
Here's a taste:
Recognizing that robust whistleblower protection is critical to preventing another financial crisis, Congress included in the Dodd-Frank financial services reform bill (H.R. 4173) numerous provisions designed to encourage whistleblowing and to provide robust protection from retaliation. These provisions create monetary awards for whistleblowers who provide original information to the SEC or CFTC, strengthen the whistleblower protection provisions of the Sarbanes-Oxley Act and the False Claims Act, and create additional whistleblower retaliation causes of action.
For instance, new Section 922 provides rewards for whistleblowing to the SEC and protection against retaliation:
Under Section 922, the SEC will be required to pay a reward to individuals who provide original information to the SEC which results in monetary sanctions exceeding $1 million. The award will range from 10 to 30 percent of the amount recouped and the amount of the award shall be at the discretion of the SEC. Factors to be considered in determining the amount of the award include the significance of the information provided by the whistleblower, the degree of assistance provided by the whistleblower, the programmatic interest of the SEC in deterring violations of the securities laws by making awards to whistleblowers, and other factors that the SEC may establish by rule or regulation. If the amount awarded is less than 10 percent or more than 30 percent of the amount recouped, a whistleblower may appeal the SEC’s determination by filing an appeal in the appropriate federal court of appeals within 30 days of the determination.
Read the whole post about all the new provisions.
A copy of the whistleblower provisions of the bill is available for download here.