Which act is known for expanding whistleblower protections and incentives in securities enforcement?

Which act is known for expanding whistleblower protections and incentives in securities enforcement?

• A. Sarbanes-Oxley Act
• B. Securities Act of 1933
• C. Dodd-Frank Act
• D. Investment Company Act

Answer: (C)

The Dodd-Frank Act is known for expanding whistleblower protections and incentives in securities enforcement. It created a formal SEC Whistleblower Program that offers substantial monetary rewards to tipsters whose information leads to enforcement actions resulting in penalties over a certain threshold, with awards potentially up to about 30% of collected penalties. It also strengthens protections against retaliation by employers, encouraging more insiders to come forward. While Sarbanes-Oxley did strengthen whistleblower protections in a broader corporate context, it did not introduce the same large-scale monetary incentive program. The Securities Act of 1933 and the Investment Company Act focus on registration and regulation rather than whistleblower programs. Therefore, the Dodd-Frank Act is the one most associated with expanding whistleblower protections and incentives.

The Dodd-Frank Act is known for expanding whistleblower protections and incentives in securities enforcement. It created a formal SEC Whistleblower Program that offers substantial monetary rewards to tipsters whose information leads to enforcement actions resulting in penalties over a certain threshold, with awards potentially up to about 30% of collected penalties. It also strengthens protections against retaliation by employers, encouraging more insiders to come forward. While Sarbanes-Oxley did strengthen whistleblower protections in a broader corporate context, it did not introduce the same large-scale monetary incentive program. The Securities Act of 1933 and the Investment Company Act focus on registration and regulation rather than whistleblower programs. Therefore, the Dodd-Frank Act is the one most associated with expanding whistleblower protections and incentives.