Insights & Regulatory Updates
Regulatory Compliance in a Whistleblower-Focused Era: How Companies Can Stay Ahead
With regulators intensifying scrutiny, companies today face growing pressure to strengthen their compliance programs, especially in an environment where whistleblower activity is on the rise. Both the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have sharpened their focus on what they expect from businesses when it comes to managing risk, ensuring ethical behavior, and maintaining transparent operations.
Strengthening Whistleblower Protections: SEC Enforcement and Key Actions for Companies
On September 9, 2024, the U.S. Securities and Exchange Commission (SEC) announced settlements with seven public companies for violations of whistleblower protections under Rule 21F-17 of the Securities Exchange Act of 1934. This latest enforcement action underscores the SEC's growing commitment to ensuring whistleblowers can report potential securities violations without fear of retaliation or obstruction. Companies are now called to reassess their policies to comply with these important protections.
SEC Issues $24 Million in Whistleblower Awards: A Testament to the Power of Insider Cooperation
The Securities and Exchange Commission (SEC) continues to underscore the vital role that whistleblowers play in the enforcement of securities laws. On August 26, 2024, the SEC announced awards totaling more than $24 million to two whistleblowers whose information and assistance were instrumental in leading to successful enforcement actions, both by the SEC and another federal agency. This development is a compelling reminder of the significant public service provided by whistleblowers and the robust framework established to protect and reward them.
New Corporate Whistleblower Awards Pilot Program: A Game Changer for Corporate Accountability
On August 1, 2024, Principal Deputy Assistant Attorney General Nicole M. Argentieri unveiled a significant new initiative: the Corporate Whistleblower Awards Pilot Program. This program represents a strategic enhancement to the Department of Justice’s (DOJ) enforcement capabilities and aims to fortify corporate accountability across multiple sectors.
Navigating the SEC Whistleblower Program: Guidance for Whistleblowers and Companies Alike
The SEC’s Whistleblower Program, established under the Dodd-Frank Act, plays a pivotal role in uncovering and addressing violations of federal securities laws. While it provides significant incentives for individuals to report wrongdoing, it also poses substantial risks and challenges for companies whose employees may come forward as whistleblowers. Understanding the program's intricacies and how it impacts both whistleblowers and companies is crucial for navigating these situations effectively.