• The Commodity Futures Trading Commission said Friday it will automatically pay successful whistleblowers 30% of enforcement penalties when the individual's award would be $5 million or less.
• The move is meant to speed payments, trim paperwork for most awards, and bring the program in line with the Securities and Exchange Commission.
• Awards still remain at the Commission's discretion, and eligible whistleblowers can receive between 10% and 30% of collected penalties.

What the rule does

The federal derivatives regulator finalized a rule that locks in a 30% award when a whistleblower's share would be $5 million or under. The point is to move money out the door faster and cut the admin burden tied to the bulk of cases.

Why the agency changed the rule

Back in June, when the CFTC floated this threshold, it noted that determining the exact percentage on every single award eats up time. Setting a fixed amount for smaller penalties, which account for more than 80% of its whistleblower awards, should free staff to tackle larger and more complex matters.

Program context and quote

The CFTC's whistleblower program, created in the wake of the 2008 financial crisis, aims to encourage people to provide original, timely information that helps uncover misconduct. Qualified whistleblowers can receive 10% to 30% of the penalties the agency actually collects, and awards remain subject to the Commission's discretion. "The Whistleblower Program plays an important role in supporting the...

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