The Financial Post reports in its Tuesday, Aug. 5, edition that when the United States Congress passed
the Dodd-Frank Act in 2010, it included a provision
to encourage whistleblowing.
The Globe's Tara Perkins writes that whistleblowers whose
information enables the SEC to
levy a fine of at least $1-million
(U.S.) could be eligible for an
award equal to between 10 per cent and 30
per cent of the amount of the
fine. The SEC's whistleblower program
goes far beyond what exists
in most countries. Ms. Perkins reports that the Ontario
Securities Commission has
spent three years studying
whether it should put in place a
similar rule. It has not yet made
a decision. In the meantime, Ms. Tait says the OSC is likely missing out on some
valuable tips.
People of any nationality are eligible
for whistleblower awards
from the SEC. In its last fiscal year the SEC received 62
whistleblower tips from within
Canada. The Post says Canadians were the second-highest
foreign reporters after the British.
Whistleblowers
often have to spend
countless hours with regulators
explaining their allegations. The Post says whistleblowers are essential for cracking
down on risky or outright fraudulent
practices.
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