SEC adopts final rules on Dodd-Frank Whistleblower Program

Purpose - Recently, the US Securities and Exchange Commission (SEC) adopted final rules for the expanded whistleblower program established by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rules raise challenging issues, perhaps the most significant being their impact on existing...

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Bibliographic Details
Published in:The journal of investment compliance 2011-10, Vol.12 (3), p.33-38
Main Authors: Clark, Michael E, Lese, Laurence S, Reid Avett, F
Format: Article
Language:English
Subjects:
Attorneys
Balance sheets
Compliance
Congressional investigations
Consumer protection
Corporate governance
Criminal law
Disclosure
Employees
Employers
Financial services
Foreign subsidiaries
Independent regulatory commissions
International business enterprises
Laws, regulations and rules
Obstruction of justice
Privileged communication
Regulatory compliance
SEC regulations
Securities law
Studies
Violations
Wall Street
Wall Street Reform & Consumer Protection Act 2010-US
Whistle blowing
Whistleblowing
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Summary:Purpose - Recently, the US Securities and Exchange Commission (SEC) adopted final rules for the expanded whistleblower program established by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rules raise challenging issues, perhaps the most significant being their impact on existing compliance and corporate governance procedures. This paper seeks to examine this issue.Design methodology approach - The paper analyzes the final rules and their impact on public companies.Findings - Publicly listed entities have cause for concern that their existing compliance programs may be bypassed by whistleblowers who now have strong incentives to place personal interests ahead of loyalties to employers.Practical implications - Companies need to improve their compliance programs to limit the potential hazards.Originality value - The proffered "steps to potentially minimize Dodd-Frank whistleblowers" can help publicly traded companies - and particularly multinational enterprises subject to the Foreign Corrupt Practices Act - to avoid the significant risks that Dodd-Frank presents to them.
ISSN:1528-5812
1758-7476
DOI:10.1108/15285811111172286