The CFTC voted 4-1 to complete a rule that will let corporate whistleblowers collect up to 30 percent of penalties when they report financial wrongdoing to the agency.
Whistleblowers would be eligible if information they provide leads to a successful enforcement action that results in sanctions of at least $1 million.
More specifically, CFTC panel would determine the amount of the award, which could range from 10 percent to 30 percent of the sanctions. The panel would include representatives from three of the agency’s divisions.
According to CFTC official, there are fewer than 50 enforcement actions a year that produce sanctions of at least that value.
The Futures Industry Association and Securities Industry and Financial Market Association had criticized the proposed rules for failing to require whistleblowers to report wrongdoing first to internal company compliance offices. Under the final version, the CFTC could consider increasing the value of an award if a whistleblower turned first to a company’s compliance office.
