Day: January 2, 2019

In the last five years,over 22,000 fraud tips have been filed with the Securities and Exchange Commission (SEC). The tips are meant to help SEC combat immaterial violations. Whistleblowers have the opportunity to be eligible for an SEC award. Considering the bulkiness of the tips,SEC is not able to comprehensively examine all of them. So,they set a few rules for shortlisting the tipsters. Observing the SEC whistleblower rules is key to becoming a great tipster. Here are the top 5 rules to start with:

1. Decide if Your Really Want to Be an SEC Whistleblower

Before anything,you have to decide if you are really ready for the whistleblowing experience. It can be lonely and expensive. There is also the chance that you may not win the award. You have to take everything into consideration. This is best done in conjunction with a-.

2. Look for Original Insights

You can’t win the SEC award just by basing your insights on hearsay. The tips have to be credible and original. According to SEC,original insights are what you get from independent sources.

3. Investigate First

Before you record your SEC tips,you have to investigate them first. You have to examine their credibility. You may have to talk to a few expert lawyers about it.

4. Simplify Your Submission

As aforementioned,SEC doesn’t have enough time to go through all the submitted tips. So,you have to be brief but clear in your submission.

5. Make an Internal Report

Lastly,you are advised to make an internal report before submitting your tips to SEC. This is meant to appreciate the importance of internal compliance.

Bottom-line

Generally,observing the above SEC whistleblower rules is integral in becoming a credible tipster for the commission,so work with a -. Put them into practice to stand a chance of winning the coveted monetary award.