Informant rewards and confidentiality: a statutory regime for voluntary insider trading disclosures with protective procedures and capped incentives. Adds Chapter IIIA establishing a voluntary informant regime: definitions of Original Information and Informant; submission via a Voluntary Information Disclosure Form (Schedule D) with identity protections; creation of an Office of Informant Protection to receive, register and refer disclosures; and an Informant Incentive Committee to advise on eligibility and reward quantum. Rewards (ten percent of recovered monetary sanctions subject to a cap) are payable from the Investor Protection and Education Fund following recovery; disqualifications, confidentiality safeguards, anti retaliation obligations for employers, voidness of clauses preventing disclosure, and that disclosures do not grant amnesty are set out, together with public reporting requirements that protect informant identity.
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Informant rewards and confidentiality: a statutory regime for voluntary insider trading disclosures with protective procedures and capped incentives.
Adds Chapter IIIA establishing a voluntary informant regime: definitions of Original Information and Informant; submission via a Voluntary Information Disclosure Form (Schedule D) with identity protections; creation of an Office of Informant Protection to receive, register and refer disclosures; and an Informant Incentive Committee to advise on eligibility and reward quantum. Rewards (ten percent of recovered monetary sanctions subject to a cap) are payable from the Investor Protection and Education Fund following recovery; disqualifications, confidentiality safeguards, anti retaliation obligations for employers, voidness of clauses preventing disclosure, and that disclosures do not grant amnesty are set out, together with public reporting requirements that protect informant identity.
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