{"id":5107,"date":"2011-01-03T00:00:00","date_gmt":"2011-01-03T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2011\/01\/secs_proposal_implementing_whi_1"},"modified":"2022-03-09T16:02:37","modified_gmt":"2022-03-09T22:02:37","slug":"secs-proposal-implementing-whi-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/secs-proposal-implementing-whi-1\/","title":{"rendered":"SEC\u2019s Proposal on Implementing Whistleblower Rule Draws Mixed Reactions"},"content":{"rendered":"\n<p>Comments to the Securities and Exchange Commission\u2019s proposal to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act\u2019s whistleblower protections have drawn mixed reactions. While some commenters think that employees of publicly traded companies should have to report alleged wrongdoing to internal compliance programs before they can be eligible to a monetary award, others believes that this requirement would make whistleblowers less willing to come forward. Still others have said that whistleblowers shouldn\u2019t be allowed to hire lawyers on a contingency basis. Commenters also were in disagreement over the proposed rule\u2019s overall impact.<\/p>\n<p>Per new Section 21F of the Securities Exchange Act of 1934, a whistleblower program has been established that requires the SEC to monetarily award eligible whistleblowers that voluntarily give the agency original information about a federal securities laws violation if the tip results in successful enforcement of an administration or judicial action that leads to sanctions of over $1 million. The SEC proposed rule has the agency\u2019s Whistleblower Office administering the program, prohibits whistleblowers that engaged in wrongdoing from being eligible for the financial award, and includes anti-retaliatory provisions protecting whistleblowers. <\/p>\n<p>One theme touched upon in many of the comment letters is the desire for the SEC to make the final rule more \u201cuser friendly,\u201d which is a term found in the statute. Critics believe that the SEC\u2019s proposal doesn\u2019t meet that standard. Still others expressed concern about what the SEC would consider \u201coriginal\u201d information presented by a whistleblower. Also, while some commenters wanted firms\u2019 internal compliance programs to have the opportunity to initiate its own meaningful investigation first before the whistleblower gives the SEC a similar submission, the National Whistleblowers Center submitted a comment letter arguing that employees shouldn\u2019t have to report alleged wrongdoing internally first to qualify for the SEC whistleblower program. <\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/secs-proposal-implementing-whi-1\/\"  title=\"Continue Reading SEC\u2019s Proposal on Implementing Whistleblower Rule Draws Mixed Reactions\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Comments to the Securities and Exchange Commission\u2019s proposal to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act\u2019s whistleblower protections have drawn mixed reactions. While some commenters think that employees of publicly traded companies should have to report alleged wrongdoing to internal compliance programs before they can be eligible to a monetary award, others [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3960,3938],"tags":[],"class_list":["post-5107","post","type-post","status-publish","format-standard","hentry","category-doddfrank-wall-street-reform-a","category-whistleblowers"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SEC\u2019s Proposal on Implementing Whistleblower Rule Draws Mixed Reactions &#8212; Investor Lawyers Blog &#8212; January 3, 2011<\/title>\n<meta name=\"description\" content=\"Comments to the Securities and Exchange Commission\u2019s proposal to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act\u2019s whistleblower &#8212; January 3, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/secs-proposal-implementing-whi-1\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"SEC\u2019s Proposal on Implementing Whistleblower Rule Draws Mixed Reactions &#8212; Investor Lawyers Blog &#8212; January 3, 2011\" \/>\n<meta name=\"twitter:description\" content=\"Comments to the Securities and Exchange Commission\u2019s proposal to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act\u2019s whistleblower &#8212; January 3, 2011\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"SEC\u2019s Proposal on Implementing Whistleblower Rule Draws Mixed Reactions &#8212; Investor Lawyers Blog &#8212; January 3, 2011","description":"Comments to the Securities and Exchange Commission\u2019s proposal to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act\u2019s whistleblower &#8212; January 3, 2011","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/secs-proposal-implementing-whi-1\/","twitter_card":"summary_large_image","twitter_title":"SEC\u2019s Proposal on Implementing Whistleblower Rule Draws Mixed Reactions &#8212; Investor Lawyers Blog &#8212; January 3, 2011","twitter_description":"Comments to the Securities and Exchange Commission\u2019s proposal to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act\u2019s whistleblower &#8212; January 3, 2011","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/secs-proposal-implementing-whi-1\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/secs-proposal-implementing-whi-1\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"SEC\u2019s Proposal on Implementing Whistleblower Rule Draws Mixed Reactions","datePublished":"2011-01-03T06:00:00+00:00","dateModified":"2022-03-09T22:02:37+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/secs-proposal-implementing-whi-1\/"},"wordCount":390,"articleSection":["Dodd-Frank Wall Street Reform and Consumer Protection Act","Whistleblowers"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/secs-proposal-implementing-whi-1\/","url":"https:\/\/www.investorlawyers.com\/blog\/secs-proposal-implementing-whi-1\/","name":"SEC\u2019s Proposal on Implementing Whistleblower Rule Draws Mixed Reactions &#8212; Investor Lawyers Blog &#8212; January 3, 2011","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2011-01-03T06:00:00+00:00","dateModified":"2022-03-09T22:02:37+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Comments to the Securities and Exchange Commission\u2019s proposal to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act\u2019s whistleblower &#8212; January 3, 2011","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/secs-proposal-implementing-whi-1\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/secs-proposal-implementing-whi-1\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/secs-proposal-implementing-whi-1\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"SEC\u2019s Proposal on Implementing Whistleblower Rule Draws Mixed Reactions"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards &amp; Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards &amp; Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards &amp; Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-1kn","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5107","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=5107"}],"version-history":[{"count":2,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5107\/revisions"}],"predecessor-version":[{"id":22136,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5107\/revisions\/22136"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=5107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=5107"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=5107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}