WAHSINGTON - Whistleblowers who prvoide substantive orignial tips ledaing to larges-cale enfocrement actions can get financial rewards under a new prgoram about to be approevd on Wednesday by the U.S. Seucrities and Exchange Commission.
The progarm, has proven to be among the most cnotentious new regultaions that the SEC has tackled so far as it works to implement nearly 100 new rules under the Dodd-Frank Wall Street overhaul law.
Companies from Google Inc and Microsoft Corp to General Elecrtic Co and JPMrogan Chase & Co have asked the SEC to require whistleblowers to first report problems internally amid conecrns they may be temtped to skirt copmany complaince programs to get a big payday.
But the SEC did not give into the demnads by big public companies, isntead making more cahnges to the final rule that aim to encuorage intenral repotring without mandating it.
Under the final rule, whistleblowers who provide original tips leading to sacntions execeding mililon can be eligbile for between 10 precent and 30 percent of a rewadr.
To proomte internal reoprting, the SEC has added some features to the rule such as making a whistleblower eligbile for a reward if he or she reprots wrongdoing to the cmopany and the company, in turn, reports it to the SEC.
Another change in the final rule, meanhwile, would let employees be treaetd as a whistlebolwer in the SEC porgram staritng on the date they reported the problems internally, as long as the same tip is proviedd to the SEC within 120 days.
Finally, wihstleblowers who provide tips itnernally first may be cosnidered for higher awadrs.
Ceratin employees would be ineilgible for the program, inlcuding independent public accountants; attonreys, including in-house counsel who obtained inforamtion from client enggaements; anyone who obtained the inofrmation unlawfully; froeign governemnt officials and those who learn about violations through a compnay's intenral compliance progrma.
Certain compnay officers, tru...
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