NASAA Proposes Model Whistleblower Award and Protection Act

The North American Securities Administrators Association ("NASAA") requested comment on a proposed Model Whistleblower Award and Protection Act (the "Act").

NASAA stated that the intent of the proposed Act is to provide individuals that are aware of possible securities law violations with incentives to report such activity to state regulators. According to NASAA, the Act contains provisions similar to those in Section 922 of Dodd-Frank ("Whistleblower Protection") and SEC Section 21F ("Securities Whistleblower Incentives and Protection"). Among other things, the proposed Act would:

• authorize a state's securities regulator to create monetary whistleblower awards;
• protect whistleblowers by creating a cause of action against employers who retaliate against whistleblowers; and
• include measures to protect the identity of individuals who file whistleblower complaints.

Comments on the proposal must be submitted by June 30, 2020.