Difference between revisions of "SEC Whistleblower Program"

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Next, the whistleblower office may reduce the amount of an award if the whistleblower unreasonably delays reporting the violation to the SEC. About 20% of the awards issued through 2015 were reduced because of an unreasonable reporting delay. In making this determination, the whistleblower office considers:
Next, the whistleblower office may reduce the amount of an award if the whistleblower unreasonably delays reporting the violation to the SEC. About 20% of the awards issued through 2015 were reduced because of an unreasonable reporting delay. In making this determination, the whistleblower office considers:
*whether the whistleblower failed to take reasonable steps to report the violation or prevent it from occurring or continuing;
*whether the whistleblower was aware of the violation but reported to the SEC only after learning of an investigation into the misconduct; and
*whether there was a legitimate reason for the whistleblower to delay reporting the violation.


whether the whistleblower failed to take reasonable steps to report the violation or prevent it from occurring or continuing;
For example, on February 28, 2017, the SEC issued an [https://www.sec.gov/rules/other/2017/34-80115.pdf order] reducing an award to 20% of the monetary sanctions collected “because of both the Claimant’s culpability in connection with the securities law violations at issue in the Covered Action and the Claimant’s unreasonable delay in reporting the wrongdoing to the Commission.”
whether the whistleblower was aware of the violation but reported to the SEC only after learning of an investigation into the misconduct; and
 
whether there was a legitimate reason for the whistleblower to delay reporting the violation.
Finally, to be eligible for an award, some whistleblowers must take certain actions (''e.g.,'' the 120-day exception for auditors under certain circumstances, see Tip #2) before reporting to the SEC. Whistleblowers should therefore understand and consider the specific eligibility requirements in determining when to report to the SEC.
For example, on February 28, 2017, the SEC issued an order reducing an award to 20% of the monetary sanctions collected “because of both the Claimant’s culpability in connection with the securities law violations at issue in the Covered Action and the Claimant’s unreasonable delay in reporting the wrongdoing to the Commission.”


Finally, to be eligible for an award, some whistleblowers must take certain actions (e.g., the 120-day exception for auditors under certain circumstances, see Tip #2) before reporting to the SEC. Whistleblowers should therefore understand and consider the specific eligibility requirements in determining when to report to the SEC.
=='''Tip #4: Know the Rules Before Filing with the SEC'''==
=='''Tip #4: Know the Rules Before Filing with the SEC'''==
Besides avoiding “unreasonable delay,” whistleblowers should be aware of other factors (see § 240.21F-6) that influence the size of awards. Whistleblowers must learn the rules early on because, as mentioned, some actions must be taken prior to filing with the SEC. For example, the whistleblower office may reduce the amount of an award if the whistleblower participated in the reported securities-law violation or interfered with the company’s internal compliance and reporting systems.
Besides avoiding “unreasonable delay,” whistleblowers should be aware of other factors (see § 240.21F-6) that influence the size of awards. Whistleblowers must learn the rules early on because, as mentioned, some actions must be taken prior to filing with the SEC. For example, the whistleblower office may reduce the amount of an award if the whistleblower participated in the reported securities-law violation or interfered with the company’s internal compliance and reporting systems.