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Dodd Frank – Who Can Qualify As A Whistleblower (Part IV)

May 23, 2013

Individuals Who Have A Legal Or Contractual Duty To Report Violations Are Excluded From The Definition Of A Whistleblower Under Dodd-Frank

To qualify for receipt of an award under Dodd-Frank, a whistleblower must have “voluntarily” provided “original information” to the SEC that led to a successful enforcement action. The rules explain that an individual who reports information to the SEC pursuant to some legal or contractual duty has not done so “voluntarily” and therefore is not eligible for an award. Individuals who provide information following a request, inquiry or demand from the SEC or as part of an investigation by Congress or the Public Company Accounting Oversight Board or any self-regulatory body relating to the subject matter of the report are also deemed not to have “voluntarily” reported.

Hat tip: An outstanding article that covers the law and final regulations in comprehensive fashion is Dodd-Frank and the SEC Final Rule: From Protected Employee To Bounty Hunter, ST001 ALI-ABA 1487 (July 28-30, 2011), which was written by Littler Mendelson, P.C. lawyers John S. Adler, Edward T. Ellis, Barbara E. Hoey, Gregory C. Keating, Kevin M. Kraham, Amy E. Mendenhall, Kenneth R. O’Brian, and Carole F. Wilder. This post is partially derived from that article.

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