Office of Inspector General Evaluates SEC’s Whistleblower Program

On January 18, 2013, the SEC’s Office of Inspector General (“OIG”) transmitted a memo detailing the results of an audit of the SEC’s new whistleblower program. Areas evaluated included: whether the program’s rules were clearly defined and user-friendly; whether the reward levels were adequate; whether the SEC promptly responds to and corresponds with interested parties; whether the appeals process was unduly burdensome; and whether the FOIA exemption added by the Dodd-Frank Act aided whistleblowers without impacting the public’s access to information.

The OIG concluded that the Whistleblower Program was adequate in all areas, but also made two recommendations, suggesting the establishment and strengthening of key performance metrics to improve the program’s internal controls in responding and communicating with interested parties. The Division of Enforcement has agreed with these and will provide the OIG with an action plan to address both recommendations.

If you believe you have a tip under the SEC Whistleblower Program, please contact attorney Ian McLoughlin at, or call (617) 439-3939 or (800) 287-8119. Alternately, click here to contact us through our website.