Dodd-Frank Whistleblower Hotline
The initial enactment of the Sarbanes-Oxley Act made an internal reporting hotline a requirement for publicly traded corporations. When Dodd-Frank took effect, the financial industry became concerned that this new system would undermine the SOX by encouraging whistleblowers to report directly to the Securities and Exchange Commission (SEC), bypassing the internal hotlines of corporations.
But this did not turn out to be the case. As it turned out, Dodd-Frank actually urged reporting to both the SEC and the internal hotlines of the corporations whistleblowers were employed by. Learn more about the Dodd-Frank whistleblower hotline below.
Encouraging Internal Reporting
Dodd-Frank supports the reporting of tips internally, as well as through the SEC. The idea is that whistleblowers should make use of the violating company’s hotline, in addition to reporting the tip to the SEC.
That way, if or when the corporation comes under investigation, the tip provided to the corporation can be turned over to the SEC, which will have already documented the whistleblower’s information. This could make the investigation more effective and increase the whistleblower’s reward amount if sanctions are ultimately imposed.
Rewards for Whistleblowers
Eligible whistleblowers who are able to provide pertinent information to the SEC that enables the commission to enforce action against the company in question may be able to obtain between 10 and 30 percent of the recovered sanctions, as long as the SEC is able to recover a minimum of $1,000,000 in monetary penalties.
Reach Out to a Dodd-Frank Protections Lawyer
If you have valuable information the SEC could use to stop a securities violation and have questions about your corporation’s Dodd-Frank whistleblower hotline, maintaining anonymity, or the Dodd-Frank provisions regarding retaliation, contact a Dodd-Frank protections lawyer at Meissner Associates today.
You can schedule a consultation with us by filling out the form at the bottom of the page or giving us a call at 1-866-764-3100.