A record high payment of USD 14 million has been paid under the Dodd-Frank Act. A whistleblower detected an infringement of the capital market regulations, which has led to an enforcement action that recovered up to USD 140 million. Importantly, the highest awards paid out this far had not exceeded USD 125 thousand.
The Dodd-Franc Act enacted by the U.S. Congress in 2010 introduced a system of awarding whistleblowers with sums reaching from 10% to 30% of the amount recovered as a result of the disclosure.
The significant increase in the award amount and an extensive promotion in the media lead to a number of interesting conclusions. According to The Wall Street Journal, the U.S. Securities and Exchange Commission finds public disclosure of information about awards peculiarly useful. Sean McKessy, the SEC Whistleblower Chief admits that financial awards and whistleblower protection promote disclosing infringements. A lot has been done to improve personal data protection in the context of the Dodd-Frank Act. Whistleblowing Office Managers ensure that they have taken all necessary steps to make whistleblowers feel safe and sound. The award winner has remained anonymous, which implies certain achievements in this area. This success has increased confidence in due diligence in whistleblowers’ personal data protection.
Additionally, Sean McKessy sees a considerable improvement in the quality of information provided, which results in a shortened period of case examination.
According to the SEC, the U.S. administration hopes to receive more useful information from whistleblowers.