SEC Adopts Whistleblower Rules Changing the Landscape for Corporate Compliance Programs and Enforcement

in Corporate Governance, Public Companies, Securities and Exchange Commission, Whistleblower Incentives & Protections

In late May 2011, the Securities and Exchange Commission voted three-to-two to approve new Regulation 21F implementing the whistleblower bounty program and anti-retaliation provisions mandated by Section 922(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Regulation 21F will take effect 60 days after publication in the Federal Register. The most controversial aspect of the proposed regulation was the absence of a requirement that corporate whistleblowers report internally before going to the SEC. While the final regulation does not require this, it enhances the incentives for whistleblowers to do so.

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