Compliance Hot Spots: SEC Backpedals on Whistleblower Changes + Stacey Abrams Campaign GC Reveals Salary + Sussmann's Lawyers Blast Durham
The SEC is again looking to make alterations to its whistleblower rules after the last batch of changes came under criticism from whistleblower advocates.
February 16, 2022 at 05:20 PM
9 minute read
Compliance Hot Spots
Welcome to Compliance Hot Spots, our weekly snapshot on white-collar, regulatory and compliance news and trends. Today, we examine the SEC's reversal on charges to the whistleblower program. Plus, how much did a prominent D.C. campaign finance lawyer make last year? We have the answer. Please get in touch with tips and feedback. Contact me at [email protected] and @AGoudsward on Twitter.
U.S. Securities and Exchange Commission building in Washington, D.C. Photo: Diego M. Radzinschi/ALM SEC Rolls Back Whistleblower Program Changes Criticized by Advocates
Remember all the way back in 2020 when the SEC worried advocates by making changes to its much-utilized whistleblower program? The commission, now under Democratic leadership, has decided that wasn't such a great idea after all.
The commission voted last week to propose rolling back the amendments that were enacted in 2020, which allowed the SEC to take into account the size of a whistleblower award when determining whether it was a reasonable payout. The rule change also disqualified some whistleblowers from collecting bounties from the SEC if they are eligible for an award through another regulatory program.
Taken together, the changes had whistleblower lawyers concerned the SEC was reducing the incentives for tipsters to come forward, sometimes at great professional risk, to report wrongdoing. The program has proved to be an enormous success for the SEC's enforcement regime with more than $1 billion paid out since it was launched over a decade ago.
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