On November 15, 2021, the SEC printed its annual report to Congress protecting the interval from October 1, 2020 to September 30, 2021. The report was ready by the SEC’s Workplace of the Whistleblower to summarize its whistleblower bounty program, report on this system’s latest dramatic progress, and spotlight key amendments to the SEC’s whistleblower program guidelines.
Report-Breaking Awards for Whistleblower Bounty Program
The report reveals that in FY 2021, the whistleblower program skilled the most important variety of submissions to this system and the most important variety of award recipients. The SEC paid out extra in whistleblower awards this fiscal 12 months than in all earlier years mixed.
The SEC obtained greater than 12,200 whistleblower ideas; a rise of 76% from FY 2020. The ideas have been obtained from 99 completely different nations and all 50 states. The commonest violations reported included: Manipulation (25%), Company Disclosures and Financials (16%), Providing Fraud (16%), Buying and selling and Pricing (6%), and Preliminary Coin Choices and Cryptocurrencies (6%).
General, the SEC awarded roughly $564 million to 108 people in FY 2021, together with the 2 largest single award payouts to this point—$114 million in October 2020 and $110 million in September 2021—which introduced the full quantity the SEC has awarded to whistleblowers for the reason that program’s inception to $1.1 billion.
Amendments to Whistleblower Program Guidelines
The SEC adopted a number of modifications to its whistleblower program efficient as of December 2020, together with to its award-setting procedures and to the definition of a “whistleblower” (see our put up on these modifications here). In keeping with the report, these amendments “increased efficiencies around the review and processing of whistleblower award claims.”
Beneath the brand new guidelines, the SEC issued two everlasting bar orders towards serial submitters who have been liable for a whole lot of frivolous award purposes.
The report additionally famous that in August 2020, the brand new SEC Chair, Gary Gensler, directed employees to contemplate revisions to 2 amendments that might have discouraged ideas by permitting the SEC to restrict the scale of a number of the largest awards and to unilaterally deny “related action” awards the place there’s one other relevant whistleblower award program.