The Securities and Exchange Commission (SEC) recently amended the rules of its program, allowing more leeway for submissions from would-be whistleblowers.
Under the new rules, whistleblowers who first failed to comply with some procedures required by the commission can take steps to amend or “perfect” their submission to ensure their eligibility for awards.
Here’s what you need to know.
SEC whistleblowers or their attorneys are required to file tips through the agency’s online portal, or by submitting a Form -TCR via mail or fax. Whistleblowers must also declare under penalty of perjury when they submit their information that the information is accurate and true to the best of their knowledge.
In the past, the SEC would simply deny claims for awards if would-be whistleblowers failed to file a proper TCR.
However, under the amended rules put into place in late 2020, whistleblowers now have an opportunity to perfect their whistleblower tip. To do so, they will need to submit a proper TCR either:
While these new rules do give whistleblowers some additional opportunity to get their submissions in, there isn’t much time. This means it is important for whistleblowers to take immediate action when they are made aware that they did not file a proper TCR, if they wish to have any chance of earning an award.
The first awards under these new rules came in February, when the SEC issued awards totaling more than $1.7 million to a pair of whistleblowers who failed to comply with the rules but then amended their tips within that 30-day timeframe.
When submitting an SEC whistleblower claim, work with an experienced whistleblower lawyer at Kardell Law Group to make sure you get through the process correctly.