The SEC has encouraged whistleblowers to report violations promptly


Moscow. November 9. The Commission on securities and stock exchanges of the USA (SEC), rewarding in November, another informant, stating that the amount paid was reduced due to the fact that he provided information about investment companies admitted to the violations of the law only after resigned.

In the message the SEC says that employees, if they knew about any illegal activities, you must act immediately to prevent new violations. While U.S. law provides protection to whistle-blowers and provides for the payment of their compensation, the report says.

In the end the SEC paid another unnamed informant, who learned about the fraudulent actions of employees of investment companies and reporting them to the authorities, $325 thousand, as he provided information only after he himself resigned from the investment company.

From 2011 to November 2015 SEC 22 paid informants $54 million.

At the same time, the SEC faced a negative reaction of a number of companies for the actions of employees reporting to regulators about corporate misconduct. In this regard, the SEC began to pay more attention on confidentiality agreements, employment contracts concluded with employees of financial companies. Sometimes in such documents shall include provisions prohibiting employees to report to the authorities about actual or potential violations in the company. In some cases, corporations require that employees refused compensation for informing the authorities.

In accordance with American laws that encourage citizens to report violations in the financial market, the Commission has the right to pay the informant for the provision of meaningful, accurate, detailed information 10-30% of the amount that was paid then the offender is in the form of fines and compensations. The total amount of the fines should be $1 million

In many cases, for example when it comes to pyramid schemes or foreign listed companies in the USA, there are problems with the recovery of money from offenders. Meanwhile, the percentage of informants may be paid only from funds actually received, and in these cases to recover money is often no one.

Each year the SEC receives thousands of tips, however only a few of them eventually become the subject of actual investigations. In 2014, the number of such messages has jumped by 21% compared with the previous year to 3.62 thousand