Possible Changes Coming to Further Strengthen the SEC Whistleblower Program

On August 2, 2021, the Chair of the US Securities and Exchange Commission, Gary Gensler, issued a “Statement in Connection with the SEC’s Whistleblower Program.” In his Statement, Chair Gensler noted that he has directed SEC staff to prepare potential revisions to certain whistleblower rule amendments that the Commission adopted last year by a narrow 3-2 margin. Chair Gensler explained that the revisions may be needed because these particular rule amendments, as written, could discourage whistleblowers from coming forward to provide information to the SEC. The Statement comes on the heels of Chair Gensler’s speech for National Whistleblower’s Day on July 30, 2021, and the continuing output of whistleblower awards from the Commission.

What comes next?  Read Arnold & Porter’s full analysishere, where we:  (i) explain the background of the relevant SEC whistleblower provisions, (ii) discuss Chair Gensler’s pro-whistleblower stance, including through his call for potential revisions to the whistleblower rule amendments, (iii) survey recent whistleblower awards where internal reporting was a factor, and (iv) identify some key takeaways for companies to consider.

If you are seeking advice related to a whistleblower issue, please reach out to any author of this blog post or your regular Arnold & Porter contact.

© Arnold & Porter Kaye Scholer LLP 2021 All Rights Reserved. This blog post is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.