The Securities and Exchange Commission's awards for corporate whistleblowers haven't had much impact on the tips that companies receive via their internal hotlines, according to a recent survey by the Institute of Internal Auditors.
In August 2011, the SEC started a program, mandated by Dodd-Frank, which awards whistleblowers from 10% to 30% of any financial recovery the agency makes as the result of information the whistleblower provided. Companies fretted that the prospect of an award might cause employees to bypass internal procedures for reporting fraud and other problems and instead head straight to the SEC.
But 84% of the IIA's respondents say they've seen no change in the number of tips or complaints received by their hotlines since the SEC award program took effect in August 2011, with 11% saying volume has increased and 5% citing a decrease.
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Susan Kelly
Susan Kelly is a business journalist who has written for Treasury & Risk, FierceCFO, Global Finance, Financial Week, Bridge News and The Bond Buyer.
