The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have collectively awared more than $2 billion to whistleblowers. This milestone was reached during the 2023 Fiscal Year, marking nearly thirteen years since the establishment of the whistleblower programs under the Dodd-Frank Act in 2010.
The programs, created concurrently, have played a significant role in fostering a culture of accountability and transparency within financial markets. Kohn, Kohn & Colapinto, a law firm well known for their work in whistleblower cases, has been closely observing the evolution of these programs, keeping comprehensive databases of all the whistleblower awards handed out by the SEC and CFTC.
However, despite these achievements, some legal professionals argue that further reforms are necessary. While the programs have significantly incentivized the exposure of fraudulent or manipulative practices, they point out that improvements could still be made, including in the areas of speed of resolutions, protection for whistleblowers, and processes governing award claims.
The exact nature and extent of these suggested reforms remain a topic of ongoing discussion within the legal community. Legal professionals working within world-class corporations and law firms will undoubtedly keep a close eye on these developments, knowing the impact they can have on corporate governance, accountability, and compliance procedures.