Supporting People who Speak Out

USA – Standards – Remedies – Rewards

USA – Standards – Remedies – Rewards

21F. ‘‘(b) AWARDS -In any covered judicial or administrative action, or related action, the Commission, under regulations prescribed by the Commission and subject to subsection (c), shall pay an award or awards to 1 or more whistleblowers who voluntarily provided original information to the Commis­sion that led to the successful enforcement of the covered judicial or administrative action, or related action, in an aggre­gate amount equal to-

‘‘(A) not less than 10 percent, in total, of what has been collected of the monetary sanctions imposed in the action or related actions; and

‘‘(B) not more than 30 percent, in total, of what has been collected of the monetary sanctions imposed in the action or related actions.

‘‘(B) CRITERIA-In determining the amount of an award made under subsection (b), the Commission- ‘‘(i) shall take into consideration-

‘‘(I) the significance of the information pro­vided by the whistleblower to the success of the covered judicial or administrative action;

‘‘(II) the degree of assistance provided by the whistleblower and any legal representative of the whistleblower in a covered judicial or administra­tive action;

‘‘(III) the programmatic interest of the Commission in deterring violations of the securi­ties laws by making awards to whistleblowers who provide information that lead to the successful enforcement of such laws; and

‘‘(IV) such additional relevant factors as the Commission may establish by rule or regulation; and

‘‘(ii) shall not take into consideration the balance of the Fund.

‘‘(2) DENIAL OF AWARD -No award under subsection (b) shall be made-

‘‘(A) to any whistleblower who is, or was at the time the whistleblower acquired the original information sub­mitted to the Commission, a member, officer, or employee of-

‘‘(i) an appropriate regulatory agency;

‘‘(ii) the Department of Justice;

‘‘(iii) a self-regulatory organization;

‘‘(iv) the Public Company Accounting Oversight Board; or

‘‘(v) a law enforcement organization;

‘‘(B) to any whistleblower who is convicted of a criminal violation related to the judicial or administrative action for which the whistleblower otherwise could receive an

award under this section;

‘‘(C) to any whistleblower who gains the information through the performance of an audit of financial statements required under the securities laws and for whom such submission would be contrary to the requirements of section 10A of the Securities Exchange Act of 1934 (15 U.S.C. 78j – 1); or

‘‘(D) to any whistleblower who fails to submit informa­tion to the Commission in such form as the Commission may, by rule, require.

Referenced Legislation: Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) (2010)

About Author

Blueprint for Free Speech
administrator