Federal Register: Proposed Rules for Implementing the Whistleblower Provisions of Secton 21F of the Securities Exchange Act of 1934

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Gavel.png FINAL RULE: This page refers to the proposed rulemaking on whistleblower provisions. The SEC final rule was issued at its May 25, 2011 open meeting.
Dodd-Frank Timeline, Whistleblower Provisions of Secton 21F of the Securities Exchange Act of 1934
Comment Deadline Final Rule Issue Effective Date
December 17, 2010 June 13, 2011 August 12, 2011

Comment letters pertaining the proposed rulemaking can be found here.

On November 3, 2010, the SEC held an open meeting concerning proposed rules for implementing the whistleblower provisions of Section 21F of the Securities Exchange Act of 1934, under the Dodd-Frank Act. The proposed rule seeks to reward individuals that provide the agency with tips that lead to successful enforcement actions.<ref>{ress Release - SEC Proposes New Whistleblower Program Under Dodd-Frank Act. SEC. Retrieved on November 3, 2010.</ref> Proposed rules were added to the Federal Register on November 17, 2010.

Proposed Rules

The following must occur in order for a whistleblower to qualify for an award:

  • In general, a whistleblower is deemed to have provided information voluntarily if the whistleblower has provided information before the government, a self-regulatory organization or the Public Company Accounting Oversight Board asks for it.
  • Original information must be based upon the whistleblower’s independent knowledge or independent analysis, not already known to the Commission and not derived exclusively from certain public sources.
  • A whistleblower’s information can be deemed to have led to successful enforcement in two circumstances:
  1. if the information results in a new examination or investigation being opened and significantly contributes to the success of a resulting enforcement action; or
  2. if the conduct was already under investigation when the information was submitted, but the information is essential to the success of the action and would not have otherwise been obtained.



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