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- State Street Challenging BNY Mellon As Largest Custody Bank
- Changes to FINRA Advisory Committees: Phase 1
- SEC Approves CAT Fee Dispute Resolution Process
- Boston-Area Consultant & Friend Settle SEC Insider Trading Charges
- SEC Chair Clayton: Statement on Status of the Consolidated Audit Trail ('CAT')
- Goldman to Launch $5bn Fund with China Investment Corp.
- Wells Fargo Launches Robo-Adviser Targeting Millenial Investors
- Barclays Fails to End U.S. 'Dark Pool' Class Action
- Goldman Sachs' Chief Risk Officer, Craig Broderick, to Retire
- Time to Renew FINRA Registrations - B/D, IA, Agent, IA Rep, Branches
- New Jersey’s Next Governor Could Be a Democrat Who Worked at Goldman Sachs
- FINRA New York Region Networking Seminar - December 1st
- SEC Approves “Pay-to-Play” and Related Rules for Capital Acquisition Brokers
- Hedge Fund Giant Paul Singer Targeted for Destruction by Steve Bannon
- Saudi Arabia's arrest of Prince Alwaleed 'would be like arresting Warren Buffett or Bill Gates' in the US
- Arrest of Billionaire Saudi Prince Touches Sizable Stakes - Citigroup, Twitter, Lyft
- New York Fed President William Dudley set to announce retirement
- FINRA Arbitration Panel Rules Against ex-LPL Broker in $30Mn Lawsuit vs. Firm
- OOPS! Goldman, JPMorgan, BofA Fail in Pricing an IPO
- Former Merrill Broker Pleads Guilty to Fee Fraud, Faces Up To 25 Years
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NEWSLETTERS & ALERTS
Rules & Regulations
Does Dodd-Frank Protect Whistleblowers Who Never Report to SEC?
Before breaking for summer recess, the U.S. Supreme Court announced that it will hear a case involving Dodd-Frank whistleblower protections. Digital Realty Trust, a real estate investment trust company, is appealing a lower court ruling in favor of an executive fired by the SF-based company after he complained internally about alleged misconduct by his supervisor. The employee never reported the matter to the SEC.
The scope of the SEC whistleblower rules, which were adopted in 2011 under Dodd-Frank, are "on trial" in this case. Those rules: (i) prohibit corporate employers from retaliating in any way against whistleblowers who try to report allegations of securities law; and, (ii) give the SEC the power to offer monetary awards to whistleblowers whose tips lead to successful enforcement actions.
IF THE SUPREME COURT RULES IN FAVOR OF THE COMPANY. Digital Realty Trust argues the anti-retaliation protections do not apply to people who fail to report their allegations to the SEC because the law defines a whistleblower as a person who reports possible securities violations to the SEC. A decision in favor of Digital Realty Trust could deter people from reporting misconduct internally, according to Jordan Thomas, a partner at Labaton Sucharow who represents whistleblowers.
"I think both corporate whistleblowers and corporations should hope that the Supreme Court finds that internal reporting is sufficient to have the anti-retaliation protections because if not, sophisticated corporate whistleblowers will bypass internal reporting systems and report directly to the SEC."