The Associated Press is out with a story on upcoming changes to the Securities and Exchange Commission (SEC) whistleblower program.
A federal agency is moving with little fanfare to revamp one of the most successful whistleblower programs in the government, alarming advocates who warn the changes will set back efforts to police Wall Street and punish corporate fraud.
Stephen M. Kohn, chair of the NWC board, told AP that the changes would “destroy the program.”
The proposal would add additional reporting requirements and allow the SEC to cap some awards.The U.S. Chamber of Commerce told AP that the proposal is a small but important step toward stemming “large number of low-quality complaints advanced by … bounty seekers more concerned with enriching themselves than truly protecting investors.”
The NWC has been monitoring these proposals and filed the first of several comments on the changes in December. At that time, the organization submitted the results of research it had conducted on SEC awards, which included a look at how many cases are rejected.