Whistleblowers continue to make headlines in the financial services world. Last year, whistleblowers received $435 million in payouts, with three awards totaling $170 million reportedly paid to Bank of America whistleblowers. (NYTimes) And last September, the SEC paid more than $30 million to one tipster alone—a record award for the agency. (SEC.GOV)
The whistleblower phenomenon has only gained momentum in 2015. Just last month, the SEC announced a more than $1 million payout to a whistleblower with an internal audit or compliance responsibility—just its second such award in history. (SEC.GOV) Also in April, the SEC announced its first-ever whistleblower award in a retaliation case. (SEC.GOV) While the promise of a large award can certainly provide an incentive to head to an outside agency, a 2012 study suggested that 84% of whistleblowers who filed compliance violations outside of their company had first attempted to report their concerns internally. (WSJ)
Regardless of motivation, SEC Chairwoman Mary Jo White has called the SEC whistleblower program a success, hailing whistleblowers for providing an invaluable public service and positioning the SEC as the whistleblower’s advocate. (Corporate Council) The volume and quality of tips was higher than first expected, but it has not come without bumps. Roughly 83% of whistleblowers who have applied for awards since 2011 have not received a decision from the SEC. (WSJ) And one so-called “serial tipster” who made 196 claims, has been banned from the program. (WSJ)
S.P. Slaughter
@SP_Slaughter
The whistleblower phenomenon has only gained momentum in 2015. Just last month, the SEC announced a more than $1 million payout to a whistleblower with an internal audit or compliance responsibility—just its second such award in history. (SEC.GOV) Also in April, the SEC announced its first-ever whistleblower award in a retaliation case. (SEC.GOV) While the promise of a large award can certainly provide an incentive to head to an outside agency, a 2012 study suggested that 84% of whistleblowers who filed compliance violations outside of their company had first attempted to report their concerns internally. (WSJ)
Regardless of motivation, SEC Chairwoman Mary Jo White has called the SEC whistleblower program a success, hailing whistleblowers for providing an invaluable public service and positioning the SEC as the whistleblower’s advocate. (Corporate Council) The volume and quality of tips was higher than first expected, but it has not come without bumps. Roughly 83% of whistleblowers who have applied for awards since 2011 have not received a decision from the SEC. (WSJ) And one so-called “serial tipster” who made 196 claims, has been banned from the program. (WSJ)
S.P. Slaughter
@SP_Slaughter
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