Senators told Securities and Exchange Commission Chairman Jay Clayton that they were concerned the agency was considering “detrimental revisions” to its whistleblower rules, which the agency plans to vote on at a meeting that started at 10 a.m. Wednesday.
The planned changes, Sens. Elizabeth Warren, D-Mass.; Sherrod Brown, D-Ohio; and Christopher Van Hollen, D-Md., wrote in a recent letter, “regrettably, … could deter whistleblowers and impede an individual’s ability to recover an award for reporting wrongdoing. Upon its release, the Proposal created confusion because it suggests the SEC could cap awards.”
The agency says its proposed amendments 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.
SEC watchers are concerned that the proposed changes could disqualify many potential whistleblowers.