Daily Management Review

SEC expands its Whistleblower Program


12/26/2016


The Securities and Exchange Commission (SEC) of the USA has tightened the grip on companies that are trying to restrict activities of informants. New rules imply ban of labor contracts that threaten an employee with dismissal in case of informing government agencies in irregularities in the company.



Steven Depolo
Steven Depolo
Earlier in December, SEC issued two decisions on penalties against such offenders - energy company SandRidge Energy Inc. Oklahoma ($ 1.4 million) and advertising company NeuStar Inc. for $ 180 thousand. Over the past 2 years, the Commission has considered five similar cases.

"This issue will be central to my office in 2017, and I look forward to consideration of additional cases in the framework of our mandate," - said Head of SEC management for interaction with informants Jane Norberg in an interview with The Wall Street Journal.

"Public companies are not allowed to include in the contract provisions that ban informing the Securities and Exchange Commission about violation of current laws and regulations," - Antonia Chion, Deputy Head of SEC’s division responsible for execution of the rule of law, commented the decision.

SEC has rewarded informants since 2011. According to the law, volunteers-informants, if their information on violations of the law were confirmed, should receive 10-30% of the amount of fines, which eventually pays the offending company. The largest payout amounted to $ 30 million. 

source: wsj.com






Science & Technology

30,000 Fake Accounts Cracked Down Upon In France by Facebook

First Laser Sensors Set To Be Rolled Out By Self-Driving Start-Up

To Keep Elderly On The Move, Japan Automakers Look To Robots

AMD purchases wireless VR developer Nitero

In Order To Combat Fraudsters, Experian Enlists Behavioral Biometrics Startup

Daimler and Robert Bosch to create a self-driving car

Miniature Lab Conducts Successful Experiments In The Outer Space

Germany is not afraid of digitalization

Driver-less Car Sector Shaken Up By Intel's $15 Billion Purchase Of Mobileye

Talk To Appliances, Or Text Them? Smart Condo Conundrum

World Politics

World & Politics

US Aircraft Carrier Could Be Struck At Any Point, Says North Korea

Various Countries’ Computer Security Watchdogs Collaboratively Discover Activities Related To Large Scale ‘International Cyber-Attack’

Europeans keep € 15 billion in obsolete money

Japan invited to conclude a trade agreement with the EU

Present “Great Repeal Bill” Punches Holes On Prime Minister May’s Worker’s Rights Agenda

China to become second largest importer of wine

EU Ambassador Tells US To Think Twice Before Making UN Irrelevant,

Skytrax names best airports in the world