Dodd-Frank Act (2010)
Definition
United States federal legislation that created the SEC Whistleblower Program, authorising awards of ten to thirty percent of sanctions exceeding one million dollars for original information, and prohibiting employer retaliation against reporters.
- Enacted
- 2010, United States
- Programme created
- SEC Whistleblower Program
- Award range
- 10% to 30% of sanctions over $1 million
- Retaliation protection
- Prohibits employer retaliation against reporters
Common questions
Does a whistleblower have to report internally first to qualify?+
No. Dodd-Frank does not require internal reporting before going to the SEC, unlike some corporate compliance frameworks. Reporting internally first can still count toward an award if the company later reports the same information to the SEC, but it is not a precondition for eligibility.
Who is excluded from Dodd-Frank whistleblower awards?+
Certain insiders are excluded or restricted, including auditors who learn of violations through an audit engagement, compliance officers acting in that role, and people who obtained the information by committing a crime tied to the violation. Foreign nationals and non-SEC regulatory areas are handled under separate award programmes.
Related terms
- Anonymous Hotline
- A reporting channel that accepts information without recording the reporter's identity. Effective hotlines use third-party operators so that the employing organisation cannot...
- EU Directive 2019/1937
- The EU Whistleblower Protection Directive, requiring organisations with fifty or more employees to establish internal reporting channels, acknowledge reports within seven days,...
- Retaliation
- Adverse action taken against a reporter in response to a protected disclosure. Common forms include dismissal, demotion, harassment, pay reduction, and exclusion...
- Tone at the Top
- The ethical stance, values, and behaviour modelled by an organisation's senior leadership. When executives consistently enforce standards and address misconduct regardless of...
- Whistleblower
- An individual, typically an employee or former employee, who reports suspected misconduct to an internal hotline, audit committee, regulator, or law enforcement...