Dodd-Frank Rules Encourage Whistleblowers To Report SEC Violations, Practitioners Say

Rules being considered by the Securities and Exchange Commission will encourage whistleblowers to come forward to report violations of federal securities laws, panelists told the District of Columbia Bar Labor and Employment Law Section Nov. 9.

On Nov. 3, the Securities and Exchange Commission issued its proposed rule for implementing the whistleblower provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was enacted July 21.

The Dodd-Frank Act added a new Section 21(f) to the Securities Exchange Act, entitled Securities Whistleblower Incentives and Protection. The whistleblower program requires the SEC to pay an award to eligible whistleblowers ...