Not only can you look yourself in the mirror for doing the right thing by turning potential “violator” of the rules into the SEC, but you will also be handsomely rewarded for your efforts. Caution read the fine print of the 305 page final rule document before you blow that whistle. See the attached link http://www.sec.gov/rules/final/2011/34-64545.pdf for the final rule.
On May 25, 2011 the SEC finalized the whistleblower rules. The Act establishes a whistleblower program that enables the SEC to pay an award, under regulations prescribed by the SEC and subject to certain limitations, to eligible whistleblowers who:
voluntarily provide the SEC original information about a violation of the federal securities laws in writing that leads to the successful enforcement of a covered judicial or administrative action, or a related action resulting in monetary sanctions exceeding $1 million.
Awards will be paid out of the statutorily-created Investor Protection Fund. The SEC will independently determine the appropriate award percentage for each whistleblower, but total award payments, in the aggregate, will equal between 10 and 30 percent of the monetary sanctions collected in the Commission’s action and the related action.
Under the final rule, when determining the percentage of a whistleblower award, the following required criteria may increase a whistleblower’s award percentage:
(1) Significance of the information provided by the whistleblower
(2) Assistance provided by the whistleblower
(3) Law enforcement interest in making a whistleblower award (BTW this one is a little vague)
(4) Participation by the whistleblower in internal compliance systems
Oh and by the way your award might be decreased by the following:
(1) Culpability of the whistleblower
(2) Unreasonable reporting delay by the whistleblower
(3) Interference with internal compliance and reporting systems by the whistleblower.
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