The SEC says whistleblowers will be able to get a cut of penalties imposed by other agencies, removing a Trump-era restriction
The SEC’s tips-for-cash program was created under the 2010 Dodd-Frank Act. The statute allows whistleblowers to receive awards of between 10% to 30% of any fines levied by the SEC as a result of a tip. While many awards are in the low hundreds of thousands of dollars, there have been some that total more than $100 million.
A recent study showed that almost a quarter of the awards handed out between 2012 and 2020 went to clients, including those who previously worked for the SEC.
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