SEC touts whistleblower award to a compliance professional – use care in responding to reports of potential violations

Abstract

Purpose

To highlight the first award granted under the US Securities and Exchange Commission Whistleblower Program to a compliance professional.

Design/methodology/approach

Explains the first award issued to a compliance professional under the SEC’s Whistleblower program and the rules for issuing such an award.

Findings

The SEC has emphasized this award to a compliance professional, noting that individuals performing compliance, audit, and legal functions are on the front lines against fraud and corruption and are often privy to the very kinds of specific, timely, and credible information that can prevent an imminent fraud or stop an ongoing fraud. The SEC’s specific courting of compliance and audit personnel makes it even more important for companies to pay particular attention to complaints raised by those individuals.

Practical implications

Companies should continue to take steps to ensure that they have vigorous compliance programs in place to detect potential issues and to respond immediately and effectively to internally reported information.

Originality/value

Practical guidance from experienced regulatory and employment lawyers.

Citation

Srere, M., Buchanan, M.B., Koch, E., Mammen, J. and Johnson, T.A. (2015), "SEC touts whistleblower award to a compliance professional – use care in responding to reports of potential violations", Journal of Investment Compliance, Vol. 16 No. 1, pp. 77-78. https://doi.org/10.1108/JOIC-01-2015-0010