Capital Markets and Government Sponsored Enterprises Subcommittee Chairman Scott Garrett announced today the Subcommittee will meet for a hearing to examine legislative proposals to improve the whistleblower provisions in the Dodd-Frank Act. The hearing will take place on Wednesday, May 11 at 2 pm in room 2128 Rayburn.
Subcommittee Chairman Garrett said, "As with many of the provisions included in Dodd-Frank, the Committee did not spend enough time considering the whistleblower provisions before they were signed into law. Although well-intentioned, thousands of people and companies have commented to the SEC regarding the serious negative consequences of the proposed whistleblower rules. This hearing will provide a forum for those concerns, as well as an opportunity to review legislative fixes being offered by Rep. Grimm to preserve the viability of internal reporting regimes."
During the hearing the Subcommittee will focus on the Securities and Exchange Commission's (SEC) proposed rules to implement Section 922 of the Dodd-Frank Act. The Subcommittee will also examine a legislative proposal by Rep. Michael Grimm to improve the Dodd-Frank whistleblower provisions to preserve the viability of internal reporting regimes established by Sarbanes-Oxley and to prevent employees who are responsible for wrongful acts from receiving an award from the program.
The Dodd-Frank Act directs the SEC to reward whistleblowers between 10 and 30 percent of the monetary sanctions imposed. Prior to the Dodd-Frank Act, the SEC could reward whistleblowers but was not obligated to.