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"It's all in the footnotes: A field guide to SEC whistleblower awards" (Part 4 of 5) by Christopher F. Regan, Matthew E. Newman, and Ian J. Acker (Business Law Today)

Business Law Today

Christopher F. Regan

Part Four of this five-part series — “When Does the SEC Make Exceptions?” – will examine the circumstances under which the SEC will forgive a claimant’s failure to comply with the technicalities of the whistleblower program.

When Does the SEC Make Exceptions?

In this fourth part of our series, we consider footnotes related to exceptions. Given the number of technicalities involved in the SEC whistleblower program, it’s no surprise that many claimants have fatal issues, and that many claimants beg the SEC for leniency. There are two paths to receive an exception. Under the whistleblower rules, the SEC may, “in its sole discretion,” waive any of the procedural requirements for whistleblower claims “based upon a showing of extraordinary circumstances.” In addition, section 36(a) of the Exchange Act provides the SEC with the authority to exempt any provisions thereof—including the Dodd-Frank Act securities whistleblower provisions and rules thereunder—“to the extent that such exemption is necessary or appropriate in the public interest, and is consistent with the protection of investors.”

Click here to read Part 4 of the article.

Click here to read the full article.

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