Has the SEC become the “Whistleblower’s Advocate”?

Abstract

Purpose

This article serves as a timely alert to public companies and financial institutions of their potential risk exposure in light of the SEC’s aggressive interpretation of the Dodd-Frank whistleblower provisions. In particular, the article highlights the need of entities to ensure that their employment agreements, confidentiality provisions, and codes of conduct do not violate Dodd-Frank by inadvertently discouraging whistleblowing by their employees.

Design/methodology/approach

This article analyzes a recent and important speech by SEC Chair Mary Jo White regarding the SEC’s ongoing efforts to be the advocate of whistleblowers.

Findings

This article finds that the SEC will continue its role in protecting whistleblowers, including ongoing enforcement scrutiny of employment agreements and similar provisions that may discourage whistleblowers.

Practical implications

Among other things, this article highlights risk areas for public companies and financial institutions to address based on Chair White’s recent speech.

Originality/value

This article provides insights from two former SEC enforcement attorneys on an area that is of great concern to public companies and financial institutions in light of the increased focus by SEC enforcement.

Citation

Chan, P.K.M. and Greer, A.J. (2015), "Has the SEC become the “Whistleblower’s Advocate”?", Journal of Investment Compliance, Vol. 16 No. 3, pp. 22-23. https://doi.org/10.1108/JOIC-06-2015-0033