CFTC and SEC whistleblower bounties: largely similar but important differences remain

Abstract

Purpose

The purpose of this paper is to point out similarities and differences between the CFTC's and the SEC's final whistleblower incentive and protection rules, both recently adopted as mandated by the Dodd‐Frank Act.

Design/methodology/approach

The paper explains the purpose of the rules, a dissenting CFTC vote concerning internal reporting, and a few notable differences between the CFTC's and the SEC's rules, and recommends compliance measures that companies should take.

Findings

Given the incentives that both agencies' programs give to whistleblowers to report violations directly to the regulators, a company subject to either program would be well advised to enhance its culture of compliance, bolster its internal reporting processes, and encourage employees to utilize internal reporting mechanisms.

Originality/value

The paper provides expert guidance from experienced financial services lawyers.

Citation

Davison, D.J., White, T.W., Bernstein, G.C., Dube, M.R. and June, A.M. (2012), "CFTC and SEC whistleblower bounties: largely similar but important differences remain", Journal of Investment Compliance, Vol. 13 No. 1, pp. 36-38. https://doi.org/10.1108/15285811211216691