Whistleblower Provisions Regulation - Comment Letter - American Bar Association - February 4, 2011

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Gavel.png FINAL RULE: This page refers to the proposed rulemaking on whistleblower provisions. The CFTC final rule was issued at its August 4, 2011 open meeting. The SEC final rule was issued at its May 25, 2011 open meeting.
Dodd-Frank Timeline, Whistleblower Provisions, CFTC
Final Rule Issue Effective Date Proposed Amendment
August 4, 2011 October 24, 2011 August 30, 2016

CFTC Whistleblower Provisions
February 4, 2011

In the comment letter, which was submitted on behalf of the Committee on Derivatives and Futures Law and the Committee on Federal Regulation of Securities of the Section of Business Law of the American Bar Association, offered five principal policy recommendations for the CFTC regarding the implementation of whistleblower provisions:

  1. Coordinate the Commission Rules with that of the SEC so that, other than with respect to obvious statutory language differences, the two sets of Rules are virtually identical.
  2. Set minimum standards for whistleblower status, to encourage whistleblowers to provide the Commission high-quality information and to minimize false, spurious or frivolous claims;
  3. Refine the definitions of “voluntary”, “original information”, “independent knowledge” and “independent analysis” to help assure that only persons who should be entitled to awards receive them;
  4. Provide that persons who have engaged in culpable conduct would not be eligible for anti-retaliation protection or whistleblower awards; and
  5. Require, as a condition for receiving an award, absent extraordinary circumstances, that company employees pursue internal company whistleblower programs prior to submitting information to the Commission.

The letter concludes with a detailed discussion of each of the five points.

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