Last November, the Securities and Exchange Commission proposed a highly-publicized whistleblower program under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The proposed rules, described in greater detail in McGuireWoods’ white paper, offer handsome rewards to individuals who provide the SEC with high-quality information that leads to a successful enforcement action.
According the SEC’s website, the Commission was required to adopt final regulations implementing its proposed whistleblower program no later than April 21, 2011. As Jessica Holzer of the Wall Street Journal Law Blog reports, however, the Commission missed its April deadline and now expects to publish its final whistleblower rules “during the May through July timeframe.”
The delay may result from the SEC’s efforts to assess and address an outpouring of public comment and criticism that continued after the window for public comment closed. According to Ms. Holzer, SEC Spokesman John Nester has not specifically commented on the reason for the delay, but noted that the Commission continues to rework the proposed program “with an emphasis on getting the rules right.”
We will provide a full report on the final whistleblower rules when the SEC releases them this summer.