SEC Reveals Proposed Dodd-Frank Whistleblower Rules

Nov. 12, 2010

On November 3, 2010, the Securities and Exchange Commission (“SEC”) proposed rules to implement the controversial whistleblower provisions of the Dodd-Frank financial reform legislation that Congress passed in July. Section 922 of the Dodd-Frank Act provides that the SEC “shall” pay between 10 and 30 percent of any recoveries exceeding $1 million to anyone who voluntarily provides original information to the SEC leading to the successful enforcement of violations of the securities laws. The recently announced proposed rules seek to define and implement the statutory terms of the whistleblower provisions, which apply to all securities laws enforced by the SEC, including the Securities Act, the Exchange Act, the Investment Advisers Act, the Investment Company Act, and the Foreign Corrupt Practices Act (“FCPA”).

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This article was originally published by Bingham McCutchen LLP.