SEC Enforcement Actions Under Exchange Act Rule 21F-17

SEC Enforcement Actions Under Exchange Act Rule 21F-17

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In this article published by the Journal of Investment Compliance, Thomas White analyzes enforcement actions by the Securities and Exchange Commission (SEC) under Rule 21F-17(a), which prohibits actions to impede whistleblower communications with the SEC. He also provides recommendations to SEC-regulated entities that use confidentiality clauses in their employee separation agreements.

Excerpt: SEC Rule 21F-17(a) prohibits “any action to impede an individual from communicating directly with the Commission staff about a possible securities law violation, including enforcing, or threatening to enforce, a confidentiality agreement [. . .] with respect to such communications”[1]. The rule, which was adopted in August 2011, is part of the SEC's regulations that establish a program to give cash awards to whistleblowers who provide original information that results in a monetary recovery in a successful SEC enforcement action[2]. Read the article.

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