The Securities and Exchange Commission’s whistleblower rules went into effect in August despite heated opposition from companies. Recent survey data suggest companies are taking the rules, mandated by Dodd-Frank, in stride. But the true test will come when companies see whether the SEC’s bounties interfere with their internal compliance programs.
A survey of board members at public companies released in September by BDO Consulting shows 66% do not expect the bounties to undermine their compliance programs, while 15% see a potential negative impact. On the other hand, 68% of directors would support legislation to require whistleblowers to report complaints internally to collect a reward from the SEC.