The Mandatory Form TCR
On December 19, 2016, the SEC entered an Order denying SEC whistleblower awards
to two claimants, in part due to their failure to follow the procedures set forth in the SEC whistleblower rules. One of the award claimants had not submitted his or her information to the SEC on a “Tip, Complaint or Referral” form, also known as a Form TCR
The SEC Order
According to the Order, the first claimant did not provide information that caused the SEC to open an investigation, inquire into different conduct as part of an ongoing investigation, or significantly contribute to the success of the SEC’s enforcement action. The first claimant therefore failed to satisfy the “lead to” requirement.
The Order gives several different reasons as to why the second claimant’s application for an SEC whistleblower reward was denied. Like the first claimant, the second claimant did not satisfy the requirement that the information must “lead to” a successful SEC action. For further information about the “lead to” requirement, click here
In addition, the second claimant did not submit his or her information in the form and manner required by the SEC whistleblower rules.
Form And Manner Requirements
In denying the second claimant’s application for an SEC whistleblower award, the Order cites to Rules 21F-(8)(a) and 21F-9.
Rule 21F-(8)(a) reminds potential SEC whistleblowers that they must submit their information “in the form and manner that the Commission requires … in order to be eligible for an award.”
Among other things, Rule 21F-9 says that potential SEC whistleblowers must submit their information to the SEC either through the online Form TCR on the SEC’s website, or on a paper Form TCR that they must either mail or fax to the SEC’s Office of the Whistleblower (“OWB”).
Failure To Submit A Form TCR
The SEC’s Website (01/29/18)
The Order emphasizes that the second claimant did not submit his or her information on either a paper Form TCR, or on an online version through the SEC’s website.
Apparently, the second claimant did submit a tip to the SEC in some other format. Upon receiving that tip, the OWB sent the claimant a letter informing him or her of the requirement in the SEC whistleblower rules that information must be submitted on a signed Tip, Complaint or Referral Form in order to be eligible for an SEC whistleblower award.
Nevertheless, the claimant “failed to respond to OWB’s letter by promptly filing the necessary signed Form TCR.”
For additional information about the Form TCR requirement, click on the link below: