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The Securities and Exchange Commission, responding to concerns voiced by advocates, voted Friday to remove a limit on whistleblower awards that was set during the Trump administration.
The change by the Democratic-majority SEC eliminates the Wall Street regulator’s ability to deny awards to tipsters who might otherwise be eligible for a payout from another agency.
The vote reverses a change made to the whistleblower program in 2020, when the SEC was led by Chairman Jay Clayton, a political independent nominated by President Trump.
On Friday, the SEC also voted for a second amendment clarifying that the commission has the authority to consider the dollar amount of a potential award, but only for the purpose of increasing a payout. The move “will give whistleblowers additional comfort” that the SEC won’t reduce an award simply because it is large, Chairman Gary Gensler, a Democrat nominated by President Biden, said in a statement. The second amendment clarifies language changes made to the award-program rules during the Trump administration.
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Mr. Gensler last year said the SEC would pause enforcing the two Trump-era modifications. The agency formally proposed changing its rules in February.
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