After postponing a vote two times already this month, the Securities and Exchange Commission plans to vote Wednesday on controversial changes to its whistleblower rules.
Stephen Kohn, partner at Kohn, Kohn & Colapinto, wrote recently the SEC’s planned changes are “radical,” and “could restructure the Dodd-Frank Act’s highly successful corporate whistleblower law. If implemented as originally proposed, these changes would destroy America’s most successful Wall Street whistleblower law.”
The SEC on Monday announced that it issued a $2.4 whistleblower award to an individual whose reporting led to an investigation that stopped ongoing fraud and misconduct.
On Wednesday, the agency said that it would consider amendments that would enhance claim processing efficiency, and clarify and bring greater transparency to the framework used by the commission in exercising its discretion in determining award amounts, as well as otherwise address specific issues that have developed during the whistleblower program’s 10-year history.
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The commission will also consider whether to adopt interpretive guidance concerning the term “independent analysis” in the commission’s rules implementing its whistleblower program.