Over the past three months, the U.S. Commodity Futures Trading Commission (CFTC) has granted US$150 million in whistleblower awards — and it’s adopting a rule to speed up such payouts.
The U.S. derivatives regulator reported that between July and September, it has granted 10 awards for enforcement tips, totalling more than US$150 million.
With the latest payouts, the CFTC has now paid US$580 million to whistleblowers for tips that resulted in enforcement actions that have generated more than US$5.1 billion in monetary sanctions, the regulator said.
“The number and size of these awards demonstrate that the commission is committed to rewarding whistleblowers who play a critical role in the commission’s efforts to deter and prevent disruptions to our markets,” said Raagnee Beri, director of the CFTC’s Whistleblower Office, in a release.
Last week, the CFTC also approved a change to its whistleblower rules, which adopts the U.S. Securities and Exchange Commission’s policy of defaulting to presuming that awards of less than US$5 million will represent 30% of the sanctions imposed.
Currently, the regulators’ whistleblower policies allow for rewards that represent between 10% and 30% of sanctions, depending on a variety of factors. Now, regulators are hoping to speed up the adjudication of claims by stipulating that smaller claims will be assumed to result in 30% awards.
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