Success of the SEC Whistleblower Program

Benjamin Schiffrin, Director of Securities Policy at Better Markets, published a report titled The SEC’s Whistleblower Program Is Key to Protecting the Economy and Main Street Americans’ Wallets, which concludes that the SEC whistleblower program “has benefited investors by allowing the SEC to pursue enforcement actions resulting in more than $6 billion in monetary sanctions” and identify misconduct that the SEC might not otherwise uncover.

The report identifies additional indications of the success of the SEC whistleblower program:

• Whistleblower disclosures result in the return of funds to harmed investors.
• In FY 2024, the SEC received approximately 24,980 whistleblower submissions, and whistleblowers have filed over 100,000 disclosures since the inception of the program.
• Taxpayers benefit from this critical enforcement tool without having to pay awards from appropriated funds. The awards are paid from the monetary sanctions that the SEC recovers from fraudsters.
• Whistleblower confidentiality is a cornerstone of the SEC whistleblower program. Permitting whistleblowers to report anonymously through counsel protects whistleblowers from retaliation and “protects the ensuing investigation by preventing a company from learning that the SEC knows about the misconduct and possibly destroying evidence.”

SEC Whistleblower Program Key to Investor Protection

The report finds that the SEC is already underfunded and lacks the resources...

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