New SEC Rules Encourage Whistleblowers
The United States Securities and Exchange Commission (SEC) announced the adoption of two amendments to its whistleblower program that encourage filings by affording better incentives to whistleblowers.
The first amendment provides that a whistleblower may receive an award from the SEC related to information and assistance provided for related non-SEC actions. Pursuant to this amendment, the whistleblower may recover through the SEC even if the non-SEC related action has its own whistleblower program.
The second amendment allows the SEC discretion in the dollar amount of the award “for the limited purpose of increasing an award but not to lower an award.” This change was in response to a 2020 rule change that stated the SEC may consider the dollar amount of the award in making an award determination. This new amendment provides clarification that the SEC may use discretion only in increasing the whistleblower’s award.
Since the establishment of the SEC whistleblower program in 2010, the SEC has awarded over $1.3 billion in awards to more than 280 whistleblowers. Encouraging whistleblowers to come forward with information by making a financial payout more probable and valuable will ultimately strengthen the SEC whistleblower program.
Contact a Skilled Kansas City SEC Whistleblower Lawyer
If you have reported an SEC violation, it’s best to have an SEC whistleblower attorney by your side who can protect your legal rights and ensure you receive the monetary reward to which you are entitled. Contact Brady & Associates for a confidential evaluation of your case by calling (913) 696-0925 or completing our online information form. Based in Leawood near Kansas City, we represent whistleblowers in Kansas, Missouri, and beyond.
