Financial incentives for reporting to the regulator.
Esshaki Legal Media TeamCurrent as of July 2023
Individuals who voluntarily provide original information leading to a successful
enforcement action above a monetary threshold may receive an award of a
percentage of sanctions collected.
Voluntarily. Before any request from the agency directed to the individual
or the employer.
Original information. Derived from independent knowledge or independent
analysis, not already known to the agency, and not derived exclusively from
public sources or from certain proceedings.
Led to. The information caused the opening of an examination or
investigation, or significantly contributed to the success of an existing one.
Award range. A percentage band of collected sanctions, with the amount
within the band determined by the significance of the information, assistance
provided, law enforcement interest, and participation in internal compliance
systems — the last of which is what rewards internal reporting first.
Reductions for culpability, for unreasonable delay in reporting, and for
interference with internal compliance systems.
Ineligible persons including compliance and audit personnel in defined
circumstances, subject to exceptions after a waiting period or where disclosure
is needed to prevent substantial injury.
Anti-retaliation protections and a separate private action.
Impeding reporting through confidentiality agreements or severance terms is
independently actionable.