SEC Proposes A Whistleblower Program for High-Quality Tips

At its meeting today, the SEC took a number of actions that I will address in a series of blog postings.

The agency voted unanimously to propose a whistleblower program to reward individuals who provide the agency with high-quality tips that lead to successful enforcement actions.  The SEC’s proposed rule under Dodd-Frank maps out a procedure for would-be whistleblowers to provide critical information to the agency. To be considered for an award, a whistleblower must voluntarily provide the SEC with original information about a violation of the federal securities laws that leads to the successful enforcement by the SEC of a federal court or administrative action in which the SEC obtains monetary sanctions totaling more than $1 million.

The text of the proposal is posted on the SEC website.  The SEC is seeking public comment on the proposal through December 17.