Securities & Exchange Commission – Dodd-Frank Whistleblower Program
Assistance and information from a whistleblower who knows of possible securities law violations can be among the most powerful weapons in the law enforcement arsenal of the Securities and Exchange Commission. Through their knowledge of the circumstances and individuals involved, whistleblowers can help the Commission identify possible fraud and other violations much earlier than might otherwise have been possible. That allows the Commission to minimize the harm to investors, better preserve the integrity of the United States’ capital markets, and more swiftly hold accountable those responsible for unlawful conduct.
The Commission is authorized by Congress to provide monetary awards to eligible individuals who come forward with high-quality original information that leads to a Commission enforcement action in which over $1,000,000 in sanctions is ordered. The range for awards is between 10% and 30% of the money collected.
Dodd Frank Wall Street Reform & Consumer Protection Act
Dodd-Frank Wall Street Reform and Consumer Protection Act was passed by the Obama administration in 2010 in response to the 2008 financial crisis. Named after U.S. Senator Christopher J. Dodd and U.S. Representative Barney Frank this consumer protection act made changes in the American financial regulatory environment that affect all federal financial regulatory agencies and almost every part of the nation’s financial services industry.
Monitoring & Enforcement Agencies:
- Financial Stability Oversight Council
- Monitors companies deemed “too big to fail” to prevent widespread economic collapse.
- Breaks up large banks that pose risk to financial system due to size.
- Liquidates or restructures financially weak firms.
- Orderly Liquidation Authority
- Provides money to assist liquidation of financial companies placed in receivership due to financial weakness.
- Federal Insurance Office
- Identifies & monitors insurance companies that may pose a systemic risk.
- Consumer Financial Protection Bureau (CFPB)
- Prevents predatory mortgage lending
- Improves clarity of mortgage paperwork for consumers
- Reduces incentives for mortgage brokers to push more expensive loans.
- Improves credit card companies & consumer lenders disclose terms to consumers.
- Volcker Rule
- Restricts banks investments
- Regulates trading in derivatives.
- SEC Office of Credit Ratings
- Improves accuracy of ratings provided by agencies that evaluate the financial strength of businesses & governments.
The Office of the Whistleblower administers the Dodd-Frank Whistleblower Program was established to administer the Securities and Exchange Commission’s whistleblower program.
Find more information at U.S. Securities and Exchange Commissions Office of the Whistleblower.
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