SEC joins the Financial Services Authority in having a public whistleblowing mechanism
The US Securities and Exchange Commission’s new whistleblowing rules made under the Dodd-Frank Act became effective on 12 August 2011. The SEC has established an Office of the Whistleblower, with a dedicated area on the SEC website with information on how the public can “blow the whistle” on financial services and securities law wrongdoing:
“Assistance and information from a whistleblower who knows of possible securities law violations can be among the most powerful weapons in the law enforcement arsenal of the Securities and Exchange Commission. Through their knowledge of the circumstances and individuals involved, whistleblowers can help the Commission identify possible fraud and other violations much earlier than might otherwise have been possible. That allows the Commission to minimize the harm to investors, better preserve the integrity of the United States’ capital markets, and more swiftly hold accountable those responsible for unlawful conduct.”
The Financial Services Authority established its own whistleblowing programme in 2002, following the introduction of statutory protection for whistleblowers in the United Kingdom under the Pubic Interest Disclosure Act 1998.
The FSA Handbook at SYSC18.2.1G and 18.2.2G sets out guidance on internal whistleblowing procedures for authorised firms.
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