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Post says SEC's whistleblower line rewards Canadians

2014-12-09 09:50 ET - In the News

The Financial Post reports in its Tuesday edition Canadians were among the top foreigners to report tips of alleged corporate malfeasance this year to the U.S. Securities and Exchange Commission through the regulator's whistleblower line. The Post's Barbara Shecter writes calls from the United Kingdom and India outstripped those from Canada in fiscal 2014, but Canadians were the third most active tippers with 58 calls. Tips that lead to successful enforcement action are rewarded with cash. In September, the SEC authorized the payment of the largest single award to a whistleblower -- $30-million (U.S.). The tipper's identity was not revealed, but it was revealed to be a person living outside the United States. Tips received by the SEC include information about alleged insider trading, stock manipulation, offering fraud and issues related to corporate disclosure and financials. The regulator pays financial awards to people who provide voluntary tips that result in monetary sanctions of more than $1-million, with payments of between 10 and 30 per cent of the sanctions collected. Canadian securities regulators have been considering a similar program, but so far only the Canada Revenue Agency has followed through.

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