Background: Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act provides that the Commission shall pay awards to eligible whistleblowers who voluntarily provides the SEC with original information that leads to a successful enforcement action yielding monetary sanctions of over $1 million. The award amount is required to be between 10 percent and 30 percent of the total monetary sanctions collected in the Commission’s action or any related action such as in a criminal case. A whistleblower may be eligible to receive an award for original information provided to the Commission on or after July 22, 2010, but before the whistleblower rules become effective, so long as the whistleblower complies with all such rules once effective.
The Dodd-Frank Act also expressly prohibits retaliation by employers against whistleblowers and provides them with a private cause of action in the event that they are discharged or discriminated against by their employers in violation of the Act.
Implementation: Final rules implementing the Whistleblower Program were approved by the Commission on May 25, 2011. These final rules took effect August 12, 2011. Compliance with these rules is required to qualify for an award. Please visit the Office of the Whistleblower web page for additional information about the program, the Dodd-Frank statute, the final rules, how to submit a tip, complaint, or referral, and how to apply for an award.