"Record breaking" is how the U.S. Securities and Exchange Commission (SEC) described its whistleblower program results in FY 2021, and it's not hard to see why. The agency continued to receive tips from all corners of the market, and with increasing frequency. According to the SEC Office of Whistleblower statistics, the agency received a 76 percent increase in whistleblower tips over FY 2020, with the most prevalent involving alleged market manipulation, corporate disclosure and financial statement misconduct, and purported offering frauds. Not surprisingly, as the SEC's whistleblower program has matured, the agency's overall awards have continued to increase. But it is the magnitude of the increase that is noteworthy. In FY 2021, the agency issued more whistleblower awards than in the prior 10 years combined, including its two largest awards to date. In total, the SEC awarded approximately $564 million to 108 whistleblowers during the last fiscal year. On the heels of the SEC issuing awards totaling more than $40 million to four whistleblowers last week, we'll unpack certain aspects of whistleblower eligibility and protections, and offer some practical considerations for 2022.

Whistleblower Eligibility and Protections

SEC Chair Gary Gensler has been vocal about the critical role whistleblowers play in the SEC's enforcement of federal securities laws. Gensler "believe[s] deeply in whistleblower programs," and he indicated at the National Whistleblower Day Celebration on...

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