• SEC Proposes Whistleblower Rules
  • November 11, 2010 | Authors: Mark S. Bergman; David S. Huntington; Daniel Kramer; Mark A. Underberg
  • Law Firms: Paul, Weiss, Rifkind, Wharton & Garrison LLP - London Office ; Paul, Weiss, Rifkind, Wharton & Garrison LLP - New York Office
  • The SEC has proposed rules to implement the whistleblower “bounty” provisions mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Dodd-Frank Act added a new Section 21F to the Securities Exchange Act of 1934, which directs the SEC to pay awards to whistleblowers who voluntarily provide the SEC with original information about securities law violations that lead to a successful administrative or judicial enforcement action resulting in monetary sanctions exceeding $1 million. The proposed rules lay out extensive procedural and substantive requirements that whistleblowers must meet in order to be eligible for awards and the criteria that the SEC will consider in determining the amount of an award, which will range from 10 to 30 percent of monetary sanctions collected.