WASHINGTON – Sens. Chuck Grassley
(R-Iowa) and Elizabeth Warren (D-Mass.) have introduced legislation to
strengthen whistleblower protections at the U.S. Securities and Exchange
Commission (SEC). Their bipartisan proposal, the
SEC
Whistleblower Reform Act of 2022, would ensure claims are processed in a timely manner, and it would
implement new measures to prevent retaliation against whistleblowers.
“SEC whistleblowers are critical for
rooting out fraud and protecting investors, and those who often put their
career at risk to report wrongdoing should be shielded from retaliation. While
I’m pleased that the program has been an overwhelming success, we can still do
more to strengthen protections, speed up claim processing and close other
loopholes,” Grassley said.
“The American people must have confidence
that they can report violations of securities laws without retaliation from
their employer. That is why I am glad to partner with Senator Grassley to
introduce the SEC Whistleblower Reform Act of 2022 to expand and strengthen
whistleblower protections,” said Warren.
Grassley and Warren’s bipartisan proposal
has been endorsed by the National Whistleblower Center and the Whistleblower
Network News.
"This law is urgently needed.
Whistleblowers who have been fired often have to wait over four years for any
compensation. This amendment closes that painful loophole," said Stephen Kohn, chairman of the National
Whistleblower Center.
Specifically, the SEC Whistleblower Reform Act of 2022 seeks to:
- Protect
whistleblowers from retaliation if they report violations to a direct superior.
Currently, they are only protected if they report directly to the SEC or
certain select officials.
- Ensure that
claims and awards are processed in a timely manner. Although the SEC has been
improving, they have previously had a backlog that was several years long.
- Clarify that
whistleblowers cannot waive their rights through a predispute arbitration
agreement.
Sens. Catherine Cortez-Masto (D-Nev.),
Susan Collins (R-Maine) and Raphael Warnock (D-Ga.) are also cosponsors of the
legislation.
In 2010, Grassley helped create the SEC’s
whistleblower program. It has been a roaring success, receiving over 52,000
tips and collecting
over $4.8 billion in fines as of 2020. Recently, Democratic SEC Chair Gary Gensler also
credited Grassley’s work on the whistleblower program as one of the best ways
to hold people accountable and help ensure the integrity of the stock market.
Read the full text of the bill by
clicking
HERE.
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