Divided SEC Approves New Whistleblower Award Rules (1)

A divided SEC adopted new whistleblower rules that clarify the commission’s discretion to set awards required by the Dodd-Frank Act.

The Securities and Exchange Commission on Wednesday voted 3-2 in favor of final rules that didn’t ease Democratic concerns that they will let the agency limit massive bounties owed to employees who report securities law violations.

Tipsters receive awards of 10% to 30% of the money from cases that yield at least $1 million in enforcement sanctions against a company under the whistleblower program created by Dodd-Frank.

“Many market participants are familiar with the factors that we use when determining ...