Another Whistleblower award was issued yesterday by the US Securities and Exchange Commission, as the regulator awarded $4 million to the whistleblower. What do we know about SEC Whistleblower program?
21 September, AtoZForex – The main duty of the US Securities and Exchange Commission (SEC) is to protect the interests of investors, facilitate capital formation and maintain fair, orderly and efficient operation of financial markets. As a part of its regulatory activities, the SEC encourages whistleblowers to step up and inform the watchdog about firms who violate the regulations.
$4 Million Whistleblower Award
Yesterday, SEC has awarded more than $4 million to a whistleblower, who alerted and led the agency to possible fraud performers. The whistleblower’s program by SEC already has awarded more than $111 million to as much as 34 whistleblowers since its establishment in 2011. Jane Norberg, current Chief of the SEC’s office of the Whistleblower, stated:
“Our program continues to incentivize whistleblowers to come forward with solid information that helps us bring violators to justice before more wrongdoing can occur.”
The SEC guarantees the protection and confidentially of the whistleblowers by law. Also, it does not disclose any information that might directly or indirectly expose a whistleblower’s identity.
Whistleblowers are entitled to a Whistleblower Award in case they voluntarily provide the SEC with unique and useful information that may lead to an effective enforcement action. Whistleblowers awards vary between 10% and 30% of the money collected when the monetary sections are exceeding $1 million.
According to the regulator, all award distribution payments are carried out with the investor protection fund established by Congress that is funded through monetary penalties paid to the SEC by law violators.
As a note from the regulator, no funds have been taken or withheld from harmed investors to pay the awards to whistleblowers.
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