On November 15, 2021, the SEC revealed its annual report to Congress overlaying the interval from October 1, 2020 to September 30, 2021. The report was ready by the SEC’s Workplace of the Whistleblower to summarize its whistleblower bounty program, report on this system’s current dramatic progress, and spotlight key amendments to the SEC’s whistleblower program guidelines.
Report-Breaking Awards for Whistleblower Bounty Program
The report reveals that in FY 2021, the whistleblower program skilled the biggest variety of submissions to this system and the biggest variety of award recipients. The SEC paid out extra in whistleblower awards this fiscal 12 months than in all earlier years mixed.
The SEC acquired greater than 12,200 whistleblower suggestions; a rise of 76% from FY 2020. The ideas have been acquired from 99 totally different nations and all 50 states. The commonest violations reported included: Manipulation (25%), Company Disclosures and Financials (16%), Providing Fraud (16%), Buying and selling and Pricing (6%), and Preliminary Coin Choices and Cryptocurrencies (6%).
Total, the SEC awarded roughly $564 million to 108 people in FY 2021, together with the 2 largest single award payouts so far—$114 million in October 2020 and $110 million in September 2021—which introduced the full quantity the SEC has awarded to whistleblowers for the reason that program’s inception to $1.1 billion.
Amendments to Whistleblower Program Guidelines
The SEC adopted a number of modifications to its whistleblower program efficient as of December 2020, together with to its award-setting procedures and to the definition of a “whistleblower” (see our put up on these modifications here). In accordance with the report, these amendments “elevated efficiencies across the evaluation and processing of whistleblower award claims.”
Underneath the brand new guidelines, the SEC issued two everlasting bar orders in opposition to serial submitters who have been chargeable for a whole bunch of frivolous award purposes.
The report additionally famous that in August 2020, the brand new SEC Chair, Gary Gensler, directed employees to think about revisions to 2 amendments that might have discouraged suggestions by permitting the SEC to restrict the scale of a number of the largest awards and to unilaterally deny “associated motion” awards the place there may be one other relevant whistleblower award program.
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