Top 3 Reasons to Be Grateful this Season

The Securities and Exchange Commission (SEC) recently announced updated guidelines for their whistleblower program. The program, which was established in 2010 under the Dodd-Frank Act, offers financial rewards to individuals who provide the SEC with information that leads to successful enforcement actions.

One key aspect of the updated guidelines is the clarification around what constitutes a “related action.” This is important because it determines whether a whistleblower is eligible for a financial reward. According to the SEC, a related action is “a civil or criminal action brought by certain enumerated authorities where the action is based on the same original information that the individual provided to the SEC.”

Another important change is the ability of whistleblowers to apply for awards based on deferred prosecution agreements and non-prosecution agreements. Previously, the whistleblower program only covered judicial or administrative actions brought by the SEC.

The SEC also clarified that a whistleblower can receive a financial award for successful enforcement actions even if they were involved in the misconduct themselves, as long as they did not direct or approve of the misconduct.

Overall, these updates to the SEC’s whistleblower program are designed to encourage more individuals to come forward with valuable information about securities violations. By expanding the scope of eligible actions and clarifying key terms, the SEC aims to strengthen its ability to detect and prosecute financial crimes. If you have information about a securities violation, you may be eligible for a financial reward under this program.