When Congress was creating the U.S. Securities and Exchange Commission’s program for rewarding whistleblowers, corporations pressed for a requirement that tipsters first report suspected misconduct to their employers. Without that mandate, the companies argued, insiders would go straight to the SEC and ignore the internal reporting systems in which industry had invested millions of dollars.

That requirement was not adopted, but corporations did not walk away from their lobbying push empty-handed. The SEC, since the inception of the whistleblower program in 2010, promoted internal whistleblowing, even incentivizing it by awarding higher bounties to insiders who first take their concerns to their employers.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]