Common Problems That Inspired The Introduction Of The SEC Whistleblower Program
The SEC Whistleblower Attorney highlights some of the few issues that inspired the federal government to push for the introduction of the SEC Whistleblower Program. The program came into the limelight in 2010 when the Dodd-Frank Consumer Protection Act was emended to offer better capabilities and protection to whistleblowers. This was after many cases went unreported and others left unattended for many years.
Other perpetrators also intimidated whistleblowers to an extent that individuals with new information could not make an attempt of exposing the ills propagated by certain companies. Below are the main factors that inspired the decision to come up with the SEC Whistleblower Program.
Lack of sufficient reporting capabilities
Before the 2010 amendment to the Consumer Protection Act, whistleblowers were not adequately catered for and most of them feared for their lives because there were no adequate measures to protect them from the wrath of individuals who were reported for violating securities laws. Most of them could not share information because this would be made public, thereby putting a strain on their lives.
However, the SEC Whistleblower program came with many features like the anonymous reporting provision that would allow whistleblowers to report securities violations without putting their lives into danger.
Additionally, employers can no longer intimidate or fire an employee for exposing ills because this is a right that has been incorporated into the law. Those thought to have intimidated or in any manner retaliated against the goodwill of a whistleblower to expose them are sued to face legal action.
The need for international coverage
Violations happen anywhere in the world because business is not a confined area that is available in some part of the world and absent in others. Therefore, there was need to come up with a system that would make it easy for whistleblowers from any part of the world to share useful information about violations. The International reporting provision that came with the SEC Whistleblower Program is a step that enabled whistleblowers from any corner of earth to report rogue business individuals.
Awesome compensation to motivate whistleblowers
Lack of motivation may also make it difficult for a whistleblower to share information about the ills happening around him/her. Most of them viewed this is a useless step that would not benefit them at the end of the day. The SEC Whistleblower Program has eliminated this notion through the introduction of a compensation package that expends to as much as $5 million for information shared about violations.
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