June 25, 2022

Volume XII, Number 176

Advertisement
Advertisement

June 24, 2022

Subscribe to Latest Legal News and Analysis

June 23, 2022

Subscribe to Latest Legal News and Analysis

June 22, 2022

Subscribe to Latest Legal News and Analysis
Advertisement

SEC Proposes Amendments to Dodd-Frank Whistleblower Award Rules

On February 10, 2022, the SEC issued two proposals to amend the Dodd-Frank whistleblower program rules.[1]  The SEC proposes to amend Rule 21F-3 to allow it to make payment of awards under its program in certain circumstances in related actions covered by another whistleblower award program, even if the other agency’s award program has a more direct connection to the related action.  The SEC is proposing a “comparability” approach:  In cases in which another award program is not “comparable” to its award program, the SEC may award the whistleblower under its program. The proposal would also allow the SEC to make an award under its program regardless of which agency’s award program had the more direct or relevant connection to the action, if the SEC would not be able to pay more than $5 million under its program.[2] 

The second proposal relates to how the SEC may assess dollar amounts as a factor in the final award. The SEC proposes to amend Rule 21F-6 to affirm its authority to consider the dollar amount of the reward for the purpose of increasing the reward, but not for the purpose of decreasing the reward.

Copyright ©2022 Nelson Mullins Riley & Scarborough LLPNational Law Review, Volume XII, Number 110
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Adam Safwat Attorney Securities Exchange Nelson Mullins Washington DC
Partner

Adam regularly represents companies and individuals before the Department of Justice and the Securities and Exchange Commission in investigations and compliance-related matters. His practice is multi-faceted, and in addition to Foreign Corrupt Practices Act (FCPA) counseling, he focuses on issues related to white collar and regulatory enforcement impacting public and private companies, including securities and accounting fraud, financial fraud, and anti-money laundering issues. Adam also has particularly extensive experience in the pharmaceutical sector with respect to...

202-689-2872
Advertisement
Advertisement
Advertisement