SEC Dodd-Frank Whistleblower Rules Due Wednesday
Posted by: Reuben Guttman On: May 23rd, 2011 | Number of Comments: 1 Comment
Look for the Securities and Exchange Commission (SEC) to vote on the final rules governing the Dodd-Frank Whistleblower program on Wednesday, May 25, 2011. The big question will be whether the rules require that — as a predicate to receiving a bounty — a whistleblower must first report to a corporation’s internal compliance department. Although this was not set forth as a requirement in the proposed rules, the SEC had asked for comments in this area. Comments in favor of making this a requirement were received from the poster children for failed internal compliance programs including Tyco, Citi Group and Pfizer. If the SEC does not buckle to the whims of the Wall Street fraudsters, look for the Tea Partiers in Congress to take a crack at a corporate fraud protection bill as an end run around the SEC.
As we slowly emerge from a financial crisis of historic proportions, can we really afford less SEC involvement in compliance enforcement? If Wall Street has its way, the foxes would soon be guarding the chicken coop.
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