The U.S. Securities and Exchange Commission (SEC) proposed amendments to the rules governing its whistleblower program on Thursday, which would help ensure that eligible whistleblowers are rewarded.
The proposals also aim to increase efficiencies in the whistleblower claim review process and to clarify the requirements for anti-retaliation protection.
“Whistleblowers have made significant contributions to the SEC’s enforcement efforts, and the value of our whistleblower program is clear,” said SEC Chairman Jay Clayton in a statement. “The proposed rules are intended to help strengthen the whistleblower program by bolstering the commission’s ability to more appropriately and expeditiously reward those who provide critical information that leads to successful enforcement actions.”
The SEC reports that since its program began, whistleblower tips have resulted in more than US$1.4 billion in financial remedies being ordered, including more than US$740 million in disgorgement of ill-gotten gains being returned to harmed investors.
The proposed changes are going out for a 60-day comment period.