CFTC Proposed Rule - Whistleblower Awards Process, 2016

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Gavel.png FINAL RULE: Whistleblower Incentives and Protections approved at CFTC Open Meeting, August 4, 2011.[1]

Proposed Amendments: August 30, 2016

Dodd-Frank Timeline, Whistleblower Provisions, CFTC
Final Rule Issue Effective Date Proposed Amendment
August 4, 2011 October 24, 2011 August 30, 2016

On August 30, 2016, proposed changes to the Commodity Futures Trading Commission's whistleblower program were published in the Federal Register. The changes are designed to "enhance the process for reviewing whistleblower claims and to make related changes to clarify staff authority to administer the whistleblower program." The CFTC also is reinterpreting its anti-retaliation authority and proposing appropriate rule amendments to implement that authority.

The deadline for public comment is September 29, 2016. Comments may be filed and viewed on the commission web site HERE.

Background

Among the provisions ofThe Dodd-Frank Act, signed into law in 2010, directs the CFTC to issue final rules regarding the issuance of monetary rewards to individuals who provide information that leads to fines or sanctions in excess of $1 million. The act gives discretion as to the amount, only stating that it could be "between 10 and 30 percent of the sanctions collected." [2]

At an open meeting on August 4, 2011, the CFTC approved its final rule on its whistleblower program. The rule maintains the “discretionary power” of the Commission with regard to the amount awarded to informants.

At an open meeting on May 25, 2011, the SEC issued its final rule under which the whistleblower, in order to be eligible, must "voluntarily provide the SEC with original information that leads to the successful enforcement by the SEC of a federal court or administrative action in which the SEC obtains monetary sanctions totaling more than $1 million.”

Summary of the 2016 Proposal

Since the whistleblower program was established in 2011, the need for certain improvements has become apparent. This proposal addresses that need with targeted revisions to the claims review process and to the authority of staff to administer the whistleblower program. The commission also is reinterpreting its anti-retaliation authority under the Commodity Exchange Act and proposing rule amendments to implement that authority. Finally, the Commission is proposing to amend its rules to permit whistleblowers to receive awards based on both "covered actions" and the successful enforcement of related actions, as defined in the rules.

Related Documents: 2011 Final Rule; 2016 Proposal


References

  1. Open Meeting on Three Final Rule Proposals under the Dodd-Frank Act. CFTC. Retrieved on August 4, 2011.
  2. Whistleblower Awards Process. CFTC. Retrieved on August 30, 2016.

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