SEC Chair Praises The Dodd-Frank Whistleblower Program

On June 28, 2018, SEC Chair Jay Clayton issued a public statement giving high praise to the Dodd-Frank whistleblower program.  The Dodd-Frank Whistleblower Program is also known as the SEC whistleblower program.

Dodd-Frank whistleblower program

The SEC’s Home Office, Washington, D.C.

Along with the current SEC Chair, three of the four active Commissioners made their own separate comments strongly praising the Dodd-Frank whistleblower program.  (The only Commissioner who did not issue any statement had already announced that he was stepping down from the Commission and was awaiting the appointment of his successor.)

To read about the Commissioners’ separate comments regarding the Dodd-Frank whistleblower program, click here, here, and here.

The SEC Chair Said That The Dodd-Frank Whistleblower Program Was “Groundbreaking”

In his statement, the SEC Chair called the Dodd-Frank whistleblower program a “groundbreaking program”.  Among other things, he acknowledged that the Dodd-Frank whistleblower program “is a critical component” in the SEC’s enforcement toolbox.

According to the Chair, the SEC whistleblower program “has contributed significantly to our ability to detect wrongdoing and better protect investors and the marketplace, particularly where fraud is well-hidden or difficult to detect.”

In addition, he was quoted in an accompanying SEC press release as declaring:  “Whistleblowers have made significant contributions to the SEC’s enforcement efforts, and the value of our whistleblower program is clear.”

The Second SEC Chair To Praise The Dodd-Frank Whistleblower Program

SEC Chair Jay Clayton is an Independent.  He was appointed by Republican President Donald Trump.  Mr. Clayton’s predecessor as SEC Chair, Mary Jo White, was a Democrat appointed by President Barack Obama.

Like Mr. Clayton, Chair White also applauded the SEC whistleblower program.  She testified before the U.S. Congress that the SEC’s whistleblower program has had a “transformative impact” on SEC enforcement.  (For more information about Ms. White’s testimony, see here.)

And less than two years prior to Chair Clayton’s remarks, Ms. White affirmed the SEC’s commitment to the Dodd-Frank whistleblower program.  (See here.)

Thus, the two most recent SEC Chairs — one a Democrat and the other an Independent appointed by a Republican — have both lavished praise upon the SEC whistleblower program.

Additional Information

To read the SEC Chair’s statements praising the Dodd-Frank whistleblower award program, click on the links below: