SEC Sets Effective Date for New Whistleblower Rules
An SEC final rule updating its whistleblower award program will go into effect on October 3, 2022. The Notice was published in the Federal Register.
As previously covered, the final rule amends SEA Section 21F ("Securities whistleblower incentives and protection") and (i) expands the scope of award eligibility, including the types of actions that will qualify for such awards, and (ii) grants the SEC discretion to award larger amounts where the whistleblower's assistance results in multiple successful recovery actions, even if the SEC was not involved in the proceedings.
The final rule also grants the SEC the authority to increase non-related action awards through consideration of the statutory dollar amount. The SEC clarified that the rule does not permit the use of its discretion to decrease any award.
The final rule will apply to any outstanding whistleblower applications that have not yet been decided at the time of implementation as well as any future award applications.
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