The Dodd-Frank financial regulatory act makes that clear by requiring the Securities and Exchange Commission and Commodity Futures Trading Commission to pay at least 10 percent, and as much as 30 percent, of any monetary penalties over $1 million to those who provide “original information” about a violation of the law.
The financial overhaul measure requires the agencies to set up whistle-blower programs by early next year.
The S.E.C., led by Mary L. Schapiro, released its proposal last week. Unfortunately for businesses, the S.E.C. must comply with the Congressional directive that puts the interest of attracting tips about corporate wrongdoing ahead of the internal compliance programs that most corporations set up under the Sarbanes-Oxley Act, which passed eight years ago.
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