The staff of the SEC published a report on the whistleblower award program - for Senate and House Committees, as required under Section 21F(g)(5) of the Securities Exchange Act of 1934.   Among other things, Section 21F establishes a whistleblower program that requires the Commission to pay an award, under regulations prescribed by the Commission and subject to certain limitations, to eligible whistleblowers who voluntarily provide the Commission with original information about a violation of the federal securities laws that leads to the successful enforcement of a covered judicial or administrative action, or a related action.

The report, which covers the period 7/22/10 (effective date of Dodd-Frank Act) through 9/3010, includes:

• A description of the number of awards granted and the types of cases in which the awards were granted during the preceding fiscal year;
• The balance of the SEC Investor Protection Fund (“Fund”) at the beginning of the preceding fiscal year;
• The amounts deposited into or credited to the Fund during the preceding fiscal year;
• The amount of earnings on investments made under Section 21F(g)(4) during the preceding fiscal year;
• The amount paid from the Fund during the preceding fiscal year to whistleblowers pursuant to Section 21F(b);
• The balance of the Fund at the end of the preceding fiscal year; and
• A complete set of audited financial statements, including a balance sheet, income statement and cash flow analysis.

    How the Fund Operates.   Section 922 of Dodd-Frank added new Section 21F to the Exchange Act,” under which the SEC must pay awards, in the aggregate amount of at least 10% - but not more than 30% - to eligible whistleblowers who voluntarily provide the Commission with original information about a violation of the securities laws that leads to successful enforcement of an action brought by the Commission that results in monetary sanctions exceeding $1,000,000, and of certain related actions.  Awards amounts are based on the monetary sanctions actually collected in the Commission action or related action.

To access the Annual Report on Whistleblower Program, click onto:   [ SEC Special Studies, 10/29 ]