DRY gear to finalize the new whistleblower rules

WASHINGTON  - whistleblowing which provide advice original substance leading to large scale enforcement can obtain the financial rewards under a new program to be approved Wednesday by the U.S. Securities and Exchange Commission.

The program, has proved to be among the most contentious new regulations which attacked the SEC as long as it works to implement about 100 new rules under Dodd - Frank Wall Street review right.

Companies of Google Inc. and Microsoft Corp., General Electric Co and JPMorgan Chase & Co have asked the SEC to require the first whistleblowers to report problems internally in the concerns that they may be tempted to skirt company compliance programs to get a big payday.

But the SEC does not in the applications by large companies public, instead making more changes to the final rule to encourage internal statement without mandating it.

The final rule, whistleblowing which provide original advice leading to penalties exceeding $ 1 million may be eligible to between 10 and 30% of a reward.

To promote internal statement, that the SEC has added some features to the rule as the manufacture of a qualified informant to a reward if he or she reports wrongdoing to the company and the company, in turnreports to the sec.

Another change in the final rule, meanwhile, would employees be treated as an informant in the program of dry from the date they reported problems internally, as long as the same tip is provided to the SEC within 120 days.

Finally, whistleblowing which provide advice internally first can be considered for higher prices.

Some employees would be ineligible for the program, including the independent public accountants; Counsel, including the in-house counsel who obtained information of client missions; any person who has obtained information illegally. foreign officials and those who learn about the violations through a compliance program internal.

Some agents of the company, the trustees or the partners to learn more about violations of other employees or through things, as a business number would be also excluded from the program.

Exceptions may be made for employees of compliance and audit, however, if certain conditions are met. For example, if 120 days have passed after it has been reported correctly or if they feel that the company will obstruct the investigation, they can benefit to the program.

The Chamber of Commerce of the United States has warned that it can legally challenge the rule, saying that the proposal would create a "bounty program" rewards "detectives lovers for a troubleshooting big."

So far, the SEC was more limited in its ability to provide whistleblower rewards, which were limited to cases of trafficking of insiders.