What Everyone Should Understand About the SEC Whistleblower Program
Many people have wanted to report securities violations but this has not been possible owing to the many fallacies surrounding the concept. Before the SEC Whistleblower Program came into place, violations would go unreported even when this information was visible to everyone. Most of those who wanted to share the information with the SEC feared for their lives and others were not certain whether they had sufficient rights to engage in the fight against securities fraud.
This lack of understanding has been eliminated since the SEC Whistleblower Program was passed because whistleblowers have now been made to understand their rights and what they should do while reporting securities violations. Below is an elaborate description of what the program entails and why everyone should share vital information about violations.
Who can report to the SEC?
According to the SEC, anyone who comes forward with vital information exposing possible or actual violations of federal securities laws is considered a whistleblower. Virtually any person can report to the SEC, citizenship notwithstanding. Whistleblowers are expected to submit the data they gather from their observation and experiences about violations of securities laws and these details are scrutinized to obtain substance and to gauge the level of relevance.
Since the rules surrounding eligibility for monetary rewards are complex, whistleblowers are advised to consult with professional attorneys for advice on such matters before presenting their case to the SEC.
Is there identity protection on reporting?
It emerged that over 76 percent of Americans had crucial information about investors and companies but they could not risk reporting for fear they would be victimized if the perpetrator learns about their actions. This should not be a worry anymore since the SEC Whistleblower Program has come up with the anonymity guarantee provision, which ensures the identity of the whistleblower is not revealed.
Motivation and appreciation
Sharing information with the SEC could be a big step to earning an awesome reward since the body values the efforts people put into ensuring securities laws are protected. The SEC Whistleblower Program offers an appreciation package to those whistleblowers who share factual information about violations perpetrated by investors and businesses. The program rewards whistleblowers more than 30 percent of what is collected as sanction and fines, and those who share crucial details that could not be unearthed easily might also receive a bonus package that includes a whopping $4 to $5 million depending on the nature of the case and duration taken before reporting.