Compliance Corner: Securities And Exchange Commission

Editorial Staff November 15, 2021

Compliance Corner: Securities And Exchange Commission

The latest compliance news: regulatory developments, punishments, guidance, permissions and new product and service offerings.

Securities and Exchange Commission
The Securities and Exchange Commission has announced awards of more than $12.5 million and $2.5 million to two whistleblowers whose information and assistance led to a successful SEC enforcement action.

The first whistleblower alerted Commission staff to a fraudulent scheme and prompted the opening of an investigation. The second whistleblower’s information was more limited but also helped lead to the success of the enforcement action.

As always, the identities of the whistleblowers were not disclosed.

The SEC has awarded around $1.1 billion to 226 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. 

Whistleblower awards can range from 10 to 30 per cent of the money collected when the monetary sanctions exceed $1 million. 

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