Final whistleblower rules – SEC addresses internal reporting concerns

Description

Abstract: One of the more controversial provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) was to provide significant cash incentives to whistleblowers who report suspected financial misconduct directly to the SEC, instead of reporting it internally. Some critics have worried that it encourages employees to bypass their employer’s internal compliance and reporting systems. This article discusses how the SEC’s recently finalized whistleblower rules have addressed some of these concerns.