Washington, D.C. May 19, 2011. Today, the Securities and Exchange Commission (SEC) announced the Commissioners will meet on May 25th at 9:30 a.m. EST to vote on its final rules for the whistleblower provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rules will directly relate to the new “bounty” provisions in the Securities Exchange Act, which requires the SEC to pay whistleblower rewards.
The whistleblower rules have been among the most controversial in the Dodd-Frank Act. The Chamber of Commerce and other corporate lobbyists aggressively campaigned to water down whistleblower rights.
The National Whistleblowers Center (NWC) has also been heavily involved with the rulemaking process, trying to ensure that the final rules adequately protect whistleblowers. The NWC Executive Director and legal staff have met personally with each Commissioner in order to explain the detailed public comments and to rebut arguments raised by the Chamber.
Stephen Kohn, NWC Executive Director, issued the following statement:
We will carefully review the Commission’s final rules. We hope that whistleblowers will be fully protected and that we will not have to file a judicial challenge to the rules under the Administrative Procedure Act.
The whistleblower provisions will have a major impact on the enforcement and interpretation of the Securities Exchange Act and the Foreign Corrupt Practices Acts. These rules will set forth parameters regarding whistleblower rights in publicly traded companies.
The Commission’s meeting on Wednesday, May 25th at 9:30 a.m. EST, is open to the public and can also be viewed on a webcast at the SEC’s website.
Links:
CNBC Series “Bounty Hunters”
Wall Street Journal “Whistleblower Group Issues Report Saying Cash Incentive Doesn’t Drive Informants to Authorities”
Washington Post “SEC Names Sean McKessy to Head New Whistleblower Office”
