The SEC has a whistleblower program, which gives awards to any citizen who volunteers to provide information concerning a potential threat or disruption of the federal securities laws. Individuals and groups of people are eligible to be SEC whistleblowers. Companies and corporate firms are, however, not allowed to be the whistleblowers.
The SEC Whistleblower Program is open to trustees, directors, officers and even partners of an entity. One can be qualified for an SEC whistleblower award if their revelation is essential, to avoid conduct that can potentially lead to considerable injury to the property of the entity, financial interests or current investors. Individuals can also be qualified if 120 days have passed since the whistleblower offered the information to the chief compliance officer, entity’s audit committee, chief legal officer, or relevant officers. Eligibility is also possible if 120 days have passed since the whistleblower got wind of the information, they received it under conditions suggesting indicating that the chief compliance officer, entity’s audit committee, chief legal officer, or relevant officials or the whistleblower’s supervisor already knew about the information.
The SEC is keen in determining that only those who qualify can get the award. The aid offered by the whistleblower, the attention the law enforcement gives in making an award, the importance of the information provided by the whistleblower, and the contribution of the whistleblower in internal reporting systems and the obstruction with internal systems are some of the factors considered when selecting the individual to take a whistleblower award
The SEC Whistleblower reward provisions were passed by Congress to encourage both citizens and non-citizens with factual knowledge to be brave enough and help the government in arresting and prosecuting individuals who go against securities laws and give the money financial fraud victims and other casualties.
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