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

Toyota & Cartivator Are Building Flying Cars To Light Up The Olympic Flame Of 2020

Stock trading computers are not a future anymore

Temper Technology With Humanity - Apple's Cook Tells MIT Graduates

As Spying And Crime Tools Mix, Blame Game For Cyber Attacks Grows Murkier

Retailers Could Transform The Market Scenario Into Smart Shopping Experience For The Consumers With The Cloud

A Way To Unlock Wannacry Without Ransom Found By French Researchers

China to introduce face recognition payment system

Clues To Ransomware Worm's Lingering Risks Found By Security Experts

Nasdaq Brings ‘Analytics Hub’ To Provide Enhanced Trading Experience

Through XFi Launch, Comcast Moves Closer To Home Connectivity

World Politics

World & Politics

Trump to speak for America's dominance in the energy sector

U.S. Official Says Russians Targeted 21 Election Systems

The Britain’s Prime Minister To Bring Down Corporate Tax To Draw More Investments In The Country

Record 65.6 million people were displaced in 2016

Are millionaires preparing for an apocalypse?

EU says goodbye to mobile roaming charges

Denmark loses interest to electric cars

Global Airlines Conference Agenda To Accord Importance To Fresh Safety Concerns