What is the SEC whistleblower program?

The SEC Whistleblower Program is a program in Washington that allows people to report possible violation of federal securities laws to the U.S. Securities and Exchange Commission (SEC). It is part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Under the program, a whistleblower can be rewarded for providing information leading to a successful enforcement action which results in over $1 million in penalties. A whistleblower is eligible to receive between 10 and 30 percent of the penalty amount. The rewards are paid from an Investor Protection Fund, which holds payments collected from violators. The U.S. SEC also provides maximum protection to whistleblowers against any form of retaliation from employers and encourages people to report suspicious activities anonymously. In order to qualify for protection under the program, a whistleblower must not disclose the information in any manner that could reveal the identity of the source. The SEC Whistleblower Program is an important tool to prevent and detect fraud in the securities market. It is beneficial for whistleblowers as it provides them with the necessary protection and rewards for providing knowledge about frauds. It also benefits the securities industry, which is better protected against fraudulent activities.

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What is the SEC whistleblower program?

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