Following the 2010 amendment on the Dodd-Frank Consumer Protection Act, the SEC Whistleblower program was introduced to streamline the war against securities violations. The program came with additional sections that would make it easier for individuals to share information to the SEC without necessarily having to worry about victimization.
Before the amendment, many cases would go unreported simply because those with information could not access sufficient security. To make it clear to everyone, below are some of the things that have been included in the SEC Whistleblower program that should encourage anyone with useful information to forward to the body.
Whistleblowers receive employment protections
It may sound terrorizing to report violations perpetrated by your employer, but the SEC Whistleblower program backs any individual with useful information about securities violations. The program states clearly that an employer may not demote, threaten or in any manner engage in activities that are retaliatory to your actions of reporting about securities violations.
It follows that if it is confirmed an employer attempted to threaten or do anything highlighted in the program as a retaliatory measure the employee enjoys the right to seek justice through legal procedures.
The fact that the perpetrator of a crime may want to know the whistleblower makes it necessary to institute additional security measures. The inclusion of this section was inspired by the fact many cases went unreported because individuals did not want their identity revealed publicly. You can forward information to the SEC for verification and follow-ups without having to worry about other people beyond the confines of the program knowing about your action.
Monetary rewards to whistleblowers
The introduction of the Dodd-Frank reform in 2010 brought new reward packages for whistleblowers. Under this program, whistleblowers will be rewarded depending on various factors. If the information is submitted in time and its relevance is estimated to carry a lot of weight, the said whistleblower will be compensated as much as 10 to 30 percent of the total sanction amount obtained from the company in question.
In May 17, 2016, the SEC Whistleblower Program introduced additional packages, whereby a whistleblower will be eligible for compensation amounting between $5 and $6 million, if the information shared is of critical importance. With these benefits in place, the program has attracted information from all areas, thereby effectively fighting securities fraud.
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