The program
The Securities and Exchange Commission whistleblower program, offers rewards and protection to people who report on federal securities law violations. It was formed just after the stock market crash that took place in 1929 and its primary aim is to restore public confidence, by ensuring that the securities market is efficient and fair.
Rewards and protection.
Sec. offers rewards to persons, who comes forward with information regarding federal securities violations. Anyone who successfully reports on violations, which then lead to cash penalties on the offenders that exceed ten million dollars, are liable to get 10-30 percent. In addition, the programs protects the informer from any possible retaliatory attacks that may be directed their way.
Cases where the law applies
The law not only apply to those corporations that deal with the issuance of securities, but also to the dealers and brokers, investment advisers and the securities exchanges themselves. All these people, involved and working in this market, are expected by law to treat clients fairly, disclose all the necessary information and also avoid fraud.
Security laws involved
The security laws, that form the basis on which the Securities and Exchange Commission regulates the trade, are mostly anchored on six statutes. These include: The Securities Act of 1933, The Securities Exchange Act of 1934, The Trust Indenture Act of 1939, The Investment Company Act of 1940 and The Investment Advisers Act of 1940. These Acts deal with the regulation of the issuance and marketing of securities, disclosure of relevant information and regulate investment companies and investment advisers.
To better understand more sec whistleblower program visit us at SEC Whistleblower Center.
SEC Whistleblower Program 