105
edits
Difference between revisions of "SEC Whistleblower Program"
→Confidentiality Applies to Other Government Agencies
| Line 240: | Line 240: | ||
== Confidentiality Applies to Other Government Agencies == | == Confidentiality Applies to Other Government Agencies == | ||
If the SEC shares the whistleblower’s submission with another agency, such as informing the Department of Justice of a [https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Foreign_bribery_and_FCPA_violations Foreign Corrupt Practices Act (FCPA)] violation, Section 21F(h)(2)(D)(ii)(I) of the Exchange Act provides that the other agency “shall maintain such information as confidential” subject to the same confidentiality requirements that apply to the Commission under Section 21F(h)(2)(A). | If the SEC shares the whistleblower’s submission with another agency, such as informing the Department of Justice of a [https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Foreign_bribery_and_FCPA_violations Foreign Corrupt Practices Act (FCPA)] violation, Section 21F(h)(2)(D)(ii)(I) of the Exchange Act provides that the other agency “shall maintain such information as confidential” subject to the same confidentiality requirements that apply to the Commission under Section 21F(h)(2)(A). | ||
== 10-Step Summary of the SEC Whistleblower Process == | |||
Below is a 10-step summary of the SEC whistleblower process. Please note this is a general overview that does not address a multitude of considerations that whistleblowers and their attorneys should consider during the process. Whistleblowers should contact an experienced SEC whistleblower attorney for a detailed, fact-specific analysis of the process as it relates to their claim and potential whistleblower award. | |||
{| class="wikitable" | |||
| | |||
|- | |||
! Step !! Summary | |||
|- | |||
| 1. Submit a Tip to the SEC || To qualify for an award under the SEC Whistleblower Program, whistleblowers must submit tips regarding violations of federal securities laws via the SEC’s TCR Portal or by mailing/faxing a Form TCR. The SEC evaluates tips based on specificity, credibility, and timeliness. | |||
|- | |||
| 2. Tip Analysis/Investigation || The SEC’s Office of Market Intelligence reviews whistleblower tips, forwarding those that warrant investigation. Whistleblowers may be interviewed, and investigations are conducted confidentially. | |||
|- | |||
| 3. SEC Enforcement Action || Some tips lead to enforcement actions, where monetary sanctions may exceed $1 million. | |||
|- | |||
| 4. Notices of Covered Actions Posted || Each month, the SEC posts Notices of Covered Actions for enforcement cases resulting in sanctions over $1 million. | |||
|- | |||
| 5. Submit an Application for an Award || Whistleblowers have 90 days to apply for an award by submitting Form WB-APP, explaining their contribution to the enforcement action. | |||
|- | |||
| 6. Preliminary Award Determinations Issued || The SEC Office of the Whistleblower reviews award applications and issues preliminary determinations, considering factors like provided evidence and cooperation. | |||
|- | |||
| 7. Contesting a Preliminary Determination || Whistleblowers can contest preliminary determinations within 60 days by requesting a review and providing additional documentation. | |||
|- | |||
| 8. Final Orders Issued/Resolution of Appeals || If an appeal is made, the SEC reviews the case. If no Commissioner requests a review within 30 days, the determination becomes final. | |||
|- | |||
| 9. Awards Issued from Investor Protection Fund || Award payments are made from a fund established by the Dodd-Frank Act, sourced from monetary sanctions imposed on securities law violators. | |||
|- | |||
| 10. Appealing the SEC’s Final Orders || If an award is denied, whistleblowers may appeal the decision in a U.S. Court of Appeals within 30 days. | |||
|} | |||