Katz, Marshall & Banks partner Adam Herzog spoke to trade publication Regulatory Compliance Watch about the Security and Exchange Commission’s newly passed 191-page final rule.
Last week, in an attempt to encourage more whistleblowers to come forward, the agency amended the whistleblower program “for greater transparency, efficiency and clarity.”
Whistleblower attorneys are split on whether the key changes brought by the final rule will ultimately be a net positive for whistleblowers.
Mr. Herzog is hopeful that the changes will create a speedier process. “It can be very frustrating for our clients who stick their necks out” yet have to wait years for an award.
The most controversial change brought by the final rule gives the Commission broad discretion in deciding all awards. Mr. Herzog calls this new process a “black box” that is less transparent and could discourage whistleblowers from working with the SEC.
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