Washington D.C. May 24, 2011. Tomorrow, May 25th at 9:30 a.m. EST, the Securities and Exchange Commission (SEC) will meet to vote on its final rules for the whistleblower provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rules will directly relate to the new “bounty” provisions in the Securities Exchange Act, which requires the SEC to pay whistleblower rewards.
Stephen M. Kohn, NWC Executive Director, issued the following statement:
We are gravely concerned that the SEC will enact rules that will set back whistleblower protections for years to come. There has been an unprecedented and aggressive lobbying campaign by the Chamber of Commerce and other corporate interests to undermine the ability of employees to disclose fraud to the appropriate authorities.
Early indications are that the SEC will bow to corporate pressures and cut Dodd-Frank whistleblower protections off at the legs. We hope we are wrong.
Links:NWC Dodd-Frank Rulemaking page — links to memos from Commissioner meetings, NWC public comments, and other related materials