The SEC proposed two amendments to the rules governing the agency's whistleblower program.
The first proposed amendment would revise SEA Rule 21F-3(b)(3) (regarding potential recovery under other whistleblower award programs in related actions) to allow the awarding of claims in related actions that otherwise would be covered by an alternative whistleblower program. The second proposed amendment would revise SEA Rule 21F-6 ("Criteria for Determining Amount of Award") by affirming the Commission's authority to consider the dollar amount of a potential award for the purpose of increasing an award but not lowering an award.
SEC Chair Gensler supported the amendments, stating that "[w]histleblowers provide a critical public service and duty to our nation, taking personal and professional risks in doing so. Since the program's inception, enforcement matters brought using information from whistleblowers have resulted in more than $1.3 billion that has been (or is scheduled to be) returned to harmed investors."
SEC Commissioner Hester M. Peirce opposed the amendments, stating that "[a]bandoning recently adopted rules simply because they have been challenged in court both thwarts our rule-making process and risks the perception that our duly adopted rules are provisional, subject to further revision if one really, really objects."
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