Employee reported “hard-to-detect” breaches of securities laws
The tipster informed the regulator of securities violations and helped the SEC in its subsequent investigation
A former manager must be reinstated and paid an award of US$5.4 million for being terminated after reporting suspected fraud at the U.S. bank
The regulator also plans to review derivatives markets, climate change disclosure, energy sector regulation and fintech in the next three years
The whistleblower program may need bigger payouts
The primary whistleblower in the case will receive more than US$4 million while the two others will split more than US$3 million
The U.S. regulator alleged that the firm improperly prevented departing employees from potentially collecting whistleblower awards
The whistleblower will receive more than US$900,000, meaning the SEC has awarded a total of 37 whistleblowers more than US$136 thus far
The U.S. regulator has now distributed approximately US$135 million to 36 whistleblowers since issuing its first award in 2012
The tipster enabled the SEC to bring an enforcement action against the culprit before most of the money could be lost, leading to an almost total recovery of investor funds