Whistling fast and furious: SEC and CFTC continue to issue awards

Abstract

Purpose

To analyze the recent Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) whistleblower awards and to evaluate what issues may be important for in-house counsel in the future.

Design/methodology/approach

The article discusses the most recent whistleblower settlements and focuses on lessons learned for compliance.

Findings

The SEC continues to publicize substantial whistleblower awards in an effort to attract additional whistleblowers and gather information that may lead to successful enforcement actions. In addition, the CFTC, whose corresponding Whistleblower Program has been slow to issue awards has announced that it is ramping up its program.

Practical implications

Companies should ensure that they have vigorous compliance programs in place to prevent and detect potential securities violations and to respond immediately in order to mitigate penalties that may result from inadvertent violations.

Originality/value

This article identifies recent awards issued under Whistleblower Programs created under the Dodd-Frank Act and should be of interest to publicly traded companies and all entities regulated by the SEC and CFTC that may be targeted by potential whistleblowers.

Citation

Srere, M. and Mammen, J. (2016), "Whistling fast and furious: SEC and CFTC continue to issue awards", Journal of Investment Compliance, Vol. 17 No. 3, pp. 28-30. https://doi.org/10.1108/JOIC-07-2016-0035