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White, Thomas

SEC Enforcement Actions Under Exchange Act Rule 21F-17

September 29, 2017

By Thomas W. White

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.