The reward has been given to a compliance officer who provided information that assisted the SEC in an enforcement action against the whistleblower’s company.
It is the second award the SEC has made to an employee with internal audit or compliance responsibilities.
“When investors or the market could suffer substantial financial harm, our rules permit compliance officers to receive an award for reporting misconduct to the SEC,” said Andrew Ceresney, director of the SEC’s division of enforcement.
“This compliance officer reported misconduct after responsible management at the entity became aware of potentially impending harm to investors and failed to take steps to prevent it.”
Since its inception in 2011, the SEC’s whistleblower program has paid more than $50m to 16 whistleblowers who provided the SEC with unique and useful information that contributed to a successful enforcement action.
Over the past 12 months there have been a number of legal developments in the UK aimed at protecting whistleblowers.
Last year in the UK a landmark ruling granted to partners in LLPs protection under whistleblowing laws was described a “turning point” by the profession. It overturned a previous judgment stating that partners could not be protected under whistleblowing laws as they are not “workers”.