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

With China Set To Dominate, 1 Billion Could Be Using 5G By 2023

Deutsche Telekom unveils next gen 5G mobile antennas in Europe

Diamonds are now the new gold

Expert Body Says Driving In A Driverless Car In An Inebriated Condition Or On Drugs Should Be Legalized

SEC’s EDGAR database vulnerable to cyber threats

Research Says The Risk Of Severe Turbulence On Planes Will Increase Due To Climate Change

Barclays and CLS Group aim to replace SWIFT with blockchain

Designing Of Cars Being Done With Hologram Goggles At Ford

The Already Surging Cyber Attacks Are Set To Rise Even Further, Says A Study

Chinese to equip smartphones with OLED displays

World Politics

World & Politics

Scholar Says Political Appointees Not As Important As Financial Ones In China For The Economy

An Expected Change In Brussels Could Be Crucial For The Euro Zone

Destroying People Who Wouldn't Help One Of His Bankrupt Businesses Was All Trump Talked About When He Met Him In 1990s: Branson

Russia Is Worried About America’s Unpredictability

No oil contracts with Iraqi Kurdistan: Iraq’s oil ministry

Donald Trump lost $ 600 million during his presidency

Britain puts its weight behind Europe in the battle between Boeing and Bombardier

EU hopes to keep the Iran nuclear deal afloat