The Securities and Exchange Commission’s plan for a new whistleblower bounty program isn’t even in place yet, and critics are already citing a slew of unintended consequences that the new rules are likely to cause.
At the top of the list is a prediction that the SEC will be flooded with unsubstantiated allegations that will be too numerous and inconsequential to act upon. The program, created under the Dodd-Frank Act, will provide a financial bounty to whistleblowers that could amount to 30 percent of any monetary sanctions that result from the allegations.
