SEC's New Whistleblower Program Takes Effect Today

New Webpage Launched to Help People Report Violations, Apply for Awards

FOR IMMEDIATE RELEASE
2011-167

Washington, D.C., Aug. 12, 2011 — With its new whistleblower program officially becoming effective today, the Securities and Exchange Commission today launched a new webpage for people to report a violation of the federal securities laws and apply for a financial award.

The Dodd-Frank Wall Street Reform and Consumer Protection Act provided the SEC with the authority to pay financial rewards to whistleblowers who provide new and timely information about any securities law violation. Among other things, to be eligible, the whistleblower's information must lead to a successful SEC enforcement action with more than $1 million in monetary sanctions.

The SEC's new webpage at www.sec.gov/whistleblower includes information on eligibility requirements, directions on how to submit a tip or complaint, instructions on how to apply for an award, and answers to frequently asked questions.

"Early and quick law enforcement action is the key to preventing securities fraud and avoiding investor losses, and the whistleblower program gives us the tools to help achieve that goal," said Robert Khuzami, Director of the SEC's Division of Enforcement.

Sean McKessy, Chief of the SEC's Office of the Whistleblower, added, "Securities fraud is not a victimless crime. That's why why it is so important for people to step forward when they witness an ongoing securities fraud or learn about one that has taken place or is about to occur. Our new whistleblower award program makes it easier for people to take that step."

The SEC's new whistleblower program strengthens the SEC's ability to protect investors in several ways:

The SEC adopted final rules on May 25 to implement the Dodd-Frank whistleblower program. Individuals wishing to be considered for an award under the Whistleblower Program are required to submit an online questionnaire or the newly approved Form-TCR.

Prior to the enactment of the Dodd-Frank Act, the SEC only had authority to reward whistleblowers in insider trading cases.

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