June 14 2011
How Whistleblower Rule Enables Corporate Compliance
America's business community is having a collective coronary attack over the new whistleblower rules put forth by the Securities and Exchange Commission as part of Dodd-Frank. Their fears may be blinding them to the positive outcome this could have for corporate governance.
The rules create the prospect for eye-popping "bounties" — payments of 10-to-30 percent of penalties and fees over $1 million — for corporate whistleblowers who report fraud to the SEC, bypassing internal corporate-compliance mechanisms as they do so.
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