investors Archives - The Industry Spread

FMA Sets Out Key Focus Areas For The Year Ahead

July 28, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: Annual Corporate Plan, FMA, investors

FMA sets out key focus areas for the year ahead. The FMA today published its Annual Corporate Plan (ACP), which outlines its work plan for the next financial year and sets objectives for raising standards of behaviour across financial services.

The development of the 2019-20 ACP is based on a new sector-based approach that is set out in the FMA’s refreshed Strategic Risk Outlook (SRO), also published today.

The SRO provides our medium-term view of the most significant risks, as well as the major opportunities and challenges, to deliver the FMA’s mission of fair, efficient and transparent financial markets. These documents also describe our expectations of how firms need to serve the needs of their customers.

Rob Everett, Chief Executive at the FMA, said: “We have introduced a sector-based approach to provide a clear indication to stakeholders of the priority risks we want to address and the activities we will undertake to achieve our goals in the specific sectors we regulate. Our new approach reflects the maturity of the Financial Markets Conduct Act regime and our broadening focus on the treatment of investors and customers.”

The sector approach is focused on:

Capital Markets
Investment Management
Sales, Advice and Distribution
Banking and Insurance.

The FMA’s refreshed approach has resulted in the FMA updating its strategic priorities, these are:

governance culture, systems and controls
credible deterrence of misconduct
successful implementation of potential remit changes
investor and customer decision-making
promoting trust and confidence in capital markets.

These priorities provide a blueprint for what will guide our decision-making and focus our activity in the coming year. Longer-term opportunities and challenges include significant regulatory and legislative changes, impacts of innovation and climate change and the value for money of financial products. As well as changing macro-economic conditions, the emergence and development of conduct regulation internationally, and challenges to trust and confidence, highlighted through the Australian Royal Commission.

Mr Everett noted the implementation of the new regime for financial advisers as a significant piece of work in the year ahead. “We will also work closely with the Government and industry to prepare for and implement any changes to the conduct regulation regime for banks and insurers.”

“Our ongoing work with the Reserve Bank of New Zealand on the conduct and culture reviews of the banking and life insurance sectors reflects our overall objective to improve standards of behaviour and ensure all providers are serving the needs of their customers.

“We expect all market participants to review the risks we’ve identified in the sectors that impact them, assess the relevance of these risks, and what they are doing to mitigate them. Market participants should not be waiting for legislative changes, or the regulator to come knocking, to do the right thing,” Mr Everett said.

Majority of Canadian Investors Support Measures to Protect Vulnerable Investors, IIROC Survey Reveals

July 2, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: advisor, Canadian Investors, financial exploitation, IIROC, IIROC Survey, investment industry, investors, public interest, regulatory rules, Vulnerable Investors

Canadians want regulatory rules, policies and procedures put in place to prevent financial exploitation June 21, 2019 (Toronto, Ontario) – The Investment Industry Regulatory Organization of Canada (IIROC) today released results of a new national IIROC survey showing an overwhelming majority of Canadian investors believe that protective measures should be put in place to ensure that investment firms and advisors can take action when they suspect investors have become vulnerable or that others might be attempting to financially exploit them.

Highlights:

93 per cent support having a “trusted contact” listed on their account – someone the firm or advisor can contact if they believe an investor has become vulnerable or may be subject to attempted financial exploitation
89 per cent support a “temporary hold” – giving investment advisors and firms the ability to temporarily pause account activity if they receive instructions that are out of character and not in the investor’s best interest or raise suspicion of potential financial exploitation
86 per cent support creating a regulatory “safe-harbour” – providing investment advisors and firms protection from possible regulatory sanctions if they take action to protect a potentially vulnerable investor, for example by temporarily refusing instructions that are not in the investor’s best interest while investigating the situation and/or reaching out to a trusted contact
92 per cent agree it is necessary to have such regulatory tools in place to allow advisors and firms to protect vulnerable investors

“It is encouraging to see resounding support from Canadians for measures to safeguard vulnerable investors – particularly seniors – and protect them from financial exploitation,” says Andrew J. Kriegler, IIROC’s President and CEO. “This input from investors complements the comments we have heard from the investment industry on the need for tools like a regulatory safe-harbour to address the issues associated with Canada’s aging population and vulnerable investors.”

While less than a quarter of investors said they had already identified a trusted contact for their investment advisor, 71 per cent of investors said if asked, they would provide a name and contact information for someone that could be reached if an advisor became concerned about possible vulnerability, diminished capacity or financial exploitation.

Investors surveyed also underlined the need for clarity and transparency in the development of any regulatory proposal, with nine out of 10 agreeing on the need to establish clearly defined circumstances when advisors and firms are able to take protective action.

“We will continue our collaboration with the Canadian Securities Administrators (CSA) on proposals to provide the tools needed to protect vulnerable investors,” Kriegler said.

IIROC also plans to work with its regulatory, industry, government, stakeholder and community partners to develop information resources to support conversations between investors, advisors and others on the decisions and actions they can take together to address potential vulnerability and financial exploitation.

The survey, conducted for IIROC in March by The Strategic Counsel, involved 1,000 investors from across Canada to find out about their familiarity with the possible measures that can be taken to protect vulnerable investors and their support of specific concepts, such as a trusted contact, temporary hold and regulatory safe-harbour. Survey respondents were pulled from IIROC’s Investor Panel – an online pool of 10,000 investors created by IIROC to allow Canadians to provide their input directly into the regulatory process and associated public interest issues.

IIROC sought investor input on this important subject before any specific regulatory proposals had been published so that investors’ views could help inform these considerations. Any future proposal will build upon IIROC’s guidance for those who work with senior clients published in 2016, which encourages IIROCregulated investment firms to have policies and procedures that detect and address potential financial exploitation and diminished capacity situations.

IIROC will also continue to create member education webcasts to help firms and advisors protect their clients.

SEC Names Holli Heiles Pandol as Director of the Office of Legislative and Intergovernmental Affairs

June 28, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: busiess, Director, finance, Holli Heiles Pandol, industry, Intergovernmental Affairs, investors, SEC

Washington D.C., June 26, 2019 — The Securities and Exchange Commission today announced that Holli Heiles Pandol has been named Director of the agency’s Office of Legislative and Intergovernmental Affairs. Ms. Pandol will advise the Chairman, Commissioners, and SEC staff on legislative matters, provide technical assistance on securities-related legislation to congressional committees and staff, assist in preparing SEC testimony for congressional hearings, and coordinate with other government entities.

Jay Clayton, SEC Chairman
“I have had many opportunities to work with Holli as we have advocated for the agency’s mission on Capitol Hill over the past several years, and I am happy that she will continue her service to our markets and investors in her new position,” said Chairman Jay Clayton.
Ms. Pandol added, “I am honored and excited to serve in this new role. I look forward to continuing to work with Congress, the Chairman, the Commission, and its dedicated staff to help advance the interests of Main Street investors and support the integrity of our markets.”

Ms. Pandol previously served in the Office of Legislative and Intergovernmental Affairs as Senior Counsel. Before joining the SEC, Ms. Pandol spent over five years on Capitol Hill, most recently as Counsel at the House Financial Services Committee. Previously, she served as Senior Advisor and Counsel to Rep. French Hill, and Legislative Director and Tax Counsel to former Rep. Tim Griffin.

Ms. Pandol received her B.S.B.A in finance and accounting, magna cum laude, and J.D., magna cum laude, from the University of Arkansas, and LL.M. in Taxation, with distinction, from Georgetown University Law Center.

SEC Names Vanessa Countryman to Lead the Office of the Secretary

June 28, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: business, industry news, investors, markets, official Commission actions, rulemakings, SEC, Sunshine Act

Washington D.C., June 24, 2019 — The Securities and Exchange Commission today announced that Vanessa Countryman has been appointed as the agency’s Secretary. The Secretary is responsible for overseeing the administrative aspects of Commission meetings, rulemakings, and procedures. Ms. Countryman has served as Acting Secretary since March 2019.

Within the SEC, the Office of the Secretary plays a central role in ensuring the effective processing of Commission business. Office staff, among other things, review all documents submitted to the Commission, track documents submitted to the Commission, schedule Commission meetings in accordance with the Government in the Sunshine Act, maintain records of official Commission actions, and provide public notice of those actions on the SEC.gov website and in the Federal Register.

Jay Clayton, SEC Chairman
“Since she stepped into the role of Acting Secretary earlier this year, Vanessa has led the office with the utmost professionalism and integrity,” said SEC Chairman Jay Clayton. “I am pleased that the office and the agency as a whole will continue to benefit from her expertise and institutional knowledge.”
Ms. Countryman added, “I am honored and excited for the opportunity to serve in this role. It is a privilege to continue to be part of the Office of the Secretary’s exceptional team and support the Commission’s mission on behalf of investors and markets.”

Ms. Countryman joined the SEC in July 2010 as a Counsel to Commissioner Kathleen Casey and subsequently to Commissioner Daniel Gallagher. Since 2013, Ms. Countryman served as Chief Counsel in the Division of Economic and Risk Analysis, where she actively participated in numerous significant rulemakings. Prior to joining the SEC, Ms. Countryman clerked for Judge Emilio Garza on the Fifth Circuit Court of Appeals and then practiced law at Gibson, Dunn & Crutcher LLP, representing clients in appellate and regulatory matters. Ms. Countryman earned her J.D. from the University of Chicago. She received an M.Phil. from Oxford University and a B.A. from Columbia University.

SEC Updates List of Firms Using Inaccurate Information to Solicit Investors

June 15, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: avoiding fraud, Federal government, federal securities laws, fraud, Impersonators, Investor Alert, investors, Investors Buy Stock, Money, PAUSE, SEC

Washington D.C., June 10, 2019 — The Securities and Exchange Commission today announced that it updated its list of unregistered entities that use Inaccurate information to solicit primarily non-U.S. investors, adding 11 soliciting entities, four impersonators of genuine firms, and nine bogus regulators.

The SEC’s list of soliciting entities that have been the subject of investor complaints, known as the Public Alert: Unregistered Soliciting Entities (PAUSE) list, enables investors to better inform themselves and avoid being a victim of fraud. The latest additions are firms that SEC staff found were providing inaccurate information about their affiliation, location, or registration. Under U.S. securities laws, firms that solicit investors generally are required to register with the SEC and meet minimum financial standards and disclosure, reporting, and recordkeeping requirements.

Jennifer Diamantis, Chief of the SEC’s Office of Market Intelligence
“By making this information readily available through the PAUSE list, investors are better able to evaluate solicitations to buy and sell securities and avoid being a victim of fraud,” said Jennifer Diamantis, Chief of the SEC’s Office of Market Intelligence.

In addition to alerting investors to firms falsely claiming to be registered, the PAUSE list flags those impersonating registered securities firms and bogus “regulators” who falsely claim to be government agencies or affiliates. Inclusion on the PAUSE list does not mean the SEC has found violations of U.S. federal securities laws or made a judgment about the merits of any securities being offered.

The PAUSE list is periodically updated by the SEC’s Office of Market Intelligence in coordination with the Office of Investor Education and Advocacy and the Office of International Affairs.

How to protect yourself:

Be aware that fraudsters may impersonate government agencies to lure investors into scams, including advance fee fraud schemes.

Impersonators may falsely claim to be affiliated with the SEC (or another federal government agency) in an attempt to steal your personal information or your money. Federal government agencies, including the SEC, do not endorse or sponsor any particular securities, issuers, products, services, professional credentials, firms, or individuals.

Investor Alert: SEC Impersonators Pretend to Help Investors Buy Stock.

Visit Investor.gov for tips on investing wisely and avoiding fraud.

Singapore FinTech Festival and SWITCH Come Together – to Bring the Global Innovation Community to Singapore

June 15, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: Fintech, Global Innovation, investors, MAS, Singapore, singapore fintech festival, sustainability, SWITCH, technological innovation

Singapore, 12 June 2019… The Monetary Authority of Singapore (MAS), Enterprise Singapore and the National Research Foundation (NRF) today announced that the Singapore FinTech Festival (SFF) and the Singapore Week of Innovation and TeCHnology (SWITCH) would come together as SFF x SWITCH to synergise across the themes of FinTech and Deep Tech. SFF x SWITCH will run from 11 to 15 November 2019.

SFF x SWITCH will bring insights from global thought leaders, showcase innovative solutions, and engage entrepreneurs, investors and innovators from around the world. It will also provide rich networking opportunities for participants to collaborate on technological innovation across five key sectors – FinTech, Urban Solutions and Sustainability, Health and Biomedical Sciences, Advanced Manufacturing and Engineering, and Digital Services. Participants can look forward to the following key events.

Singapore FinTech Festival and SWITCH come together – to bring the global innovation community to Singapore

Participants can gain access to the three-day Conference & Exhibition of both events, which will take place from 11 to 13 November 2019 at the Singapore Expo. The Conference will feature for the first time the theme of sustainability, and cover Financial Services; Industry 4.0 – Artificial Intelligence, Blockchain, Cloud and Cybersecurity; Financial Inclusion; Green Finance; and Technology Beyond Finance. The Exhibition will feature country pavilions, industry exhibitors, financial industry showcase booths, and a startup zone.

There will be three Competitions for the global innovation community:

Global FinTech Hackcelerator, which matches innovative startup solutions to address industry’s problem statements;
SLINGSHOT 2019, an international startup pitching competition; and
FinTech Awards, which recognises innovative financial technology solutions.
Finalists from the competitions will showcase their solutions at SFF x SWITCH.

Investors and companies can have access to two Deal-Making Platforms:

Deal Fridays, curated deal-making sessions for facilitating investment into startups, that will run every Friday from 21 June to 25 October 2019; and
TechInnovation, a technology-to-industry matching marketplace which facilitates business matching within the industry, seeds licensing opportunities and fosters open innovation collaborations.

On 14 and 15 November 2019, workshops and events designed for the tech industry and an expanded Innovation Lab Crawl will take place at various locations across the island.

Mr Sopnendu Mohanty, Chief FinTech Officer, MAS, said, “The Singapore FinTech Festival is the world’s largest FinTech gathering and a marquee event for the global FinTech community. Our partnership with SWITCH this year allows us to engage technology ecosystems beyond FinTech, and to present a comprehensive showcase of innovations that benefit all segments of society. We look forward to welcoming players from the FinTech and wider technology community from all over the world to Singapore, to connect, collaborate, and celebrate innovation.”
Mr Peter Ong, Chairman, Enterprise Singapore said, “SFF x SWITCH is the foremost platform to bring together tech communities and startups around the world to bridge the gap between technology and finance for deep tech and FinTech. Singapore hosts a vibrant community of innovation enablers, enterprises and startups to drive co-innovation of new solutions relevant to global needs and modern challenges. Our strong connectivity to the region will serve as a gateway for enterprises and market-driven solutions to reach Asia and beyond.”
Dr Cheong Wei Yang, Deputy Chief Executive Officer, NRF, said, “This collaboration between SWITCH and the Singapore FinTech Festival will consolidate our national efforts to create value from science and technology – starting from the capabilities built in our research base, through to innovation and commercialisation by our enterprises. We will focus on deep tech areas relevant to Singapore’s growth as a Global-Asia node of technology, innovation and enterprise. We are excited to see more researchers, entrepreneurs, investors and companies coming together from all around the world, to benefit society and economy through innovation in new business models and novel technologies.”

Singapore FinTech Festival is organised by MAS, in partnership with The Association of Banks in Singapore, and in collaboration with SingEx Holdings. SWITCH is organised by Enterprise Singapore, NRF, and Intellectual Property Intermediary (IPI). Last year, the two events together drew close to 57,000 delegates from almost 130 countries. For more information on SFF x SWITCH 2019, please see the attached factsheet or visit www.SFFxSWITCH.com.

About the Monetary Authority of Singapore

The Monetary Authority of Singapore (MAS) is Singapore’s central bank and integrated financial regulator. As central bank, MAS promotes sustained, non-inflationary economic growth through the conduct of monetary policy and close macroeconomic surveillance and analysis. It manages Singapore’s exchange rate, official foreign reserves, and liquidity in the banking sector. As an integrated financial supervisor, MAS fosters a sound financial services sector through its prudential oversight of all financial institutions in Singapore – banks, insurers, capital market intermediaries, financial advisors, and stock exchanges. It is also responsible for well-functioning financial markets, sound conduct, and investor education. MAS also works with the financial industry to promote Singapore as a dynamic international financial centre. It facilitates the development of infrastructure, adoption of technology, and upgrading of skills in the financial industry.

FCA Confirms New Rules for P2P Platforms

June 10, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: FCA, finance products, financial advice, home finance, Investments, investors, MCOB, P2P market

Following consultation, the Financial Conduct Authority (FCA) is introducing rules designed to prevent harm to investors, without stifling innovation in the (peer-to-peer) P2P Platforms. When the FCA set its first rules for P2P, it committed to keep these under review as the sector evolved. These new rules are designed to help better protect investors and allow firms and fundraisers to operate in a long-term, sustainable manner.

Christopher Woolard, Executive Director of Strategy and Competition at the FCA said:
‘These changes are about enhancing protection for investors while allowing them to take up innovative investment opportunities. For P2P to continue to evolve sustainably, it is vital that investors receive the right level of protection.’

The FCA has refined its proposals to ensure the new rules protect consumers and support the P2P market. In particular, additional guidance has been provided to make it clear that platforms will not be prevented from including information about specific investments in their marketing materials.

Christopher Woolard, FCA Executive Director of Strategy and Competition

As originally proposed, the FCA is placing a limit on investments in P2P agreements for retail customers new to the sector of 10 per cent of investable assets. This is an important means of ensuring that they do not over-expose themselves to risk. The investment restriction will not apply to new retail customers who have received regulated financial advice.

In addition to these restrictions, the new rules cover:

More explicit requirements to clarify what governance arrangements, systems and controls platforms need to have in place to support the outcomes they advertise, with a particular focus on credit risk assessment, risk management and fair valuation practices.
Strengthening rules on plans for the wind-down of P2P platforms if they fail.
Introducing a requirement that platforms assess investors’ knowledge and experience of P2P investments where no advice has been given to them.
Setting out the minimum information that P2P platforms need to provide to investors.
Applying the Mortgage and Home Finance Conduct of Business (MCOB) sourcebook and other Handbook requirements to P2P platforms that offer home finance products, where at least one of the investors is not an authorised home finance provider.

P2P platforms need to implement these changes by 9 December 2019, except for the application of MCOB, which applies with immediate effect.

The FCA will continue to closely monitor the P2P market as it develops further.

Notes to editors

PS19/14: Loan-based (‘peer-to-peer’) and investment-based crowdfunding platforms: Feedback to CP18/20 and final rules
CP18/20: full consultation paper
The interim feedback to the Call for Input to the post-implementation review of the FCA’s crowdfunding rules
On 1 April 2013, the FCA became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the PRA. On 1 April 2014, the FCA took over responsibility for consumer credit regulation and loan-based crowdfunding became a regulated activity.
The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this, it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
Find out more information about the FCA.

B.C. Residents and Nevada-based Company Breached Cease Trade Order and Made Misrepresentations

June 10, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: BCSC, business, Capital Markets, Financial Officer, government agency, industry, industry news, investment, investment opportunities, investors, SEC, securities industry, trade

Vancouver – A British Columbia Securities Commission (BCSC) panel has found that three B.C. residents and a Nevada-based green energy company breached a cease trade order of the BCSC and failed to tell investors about the existence of the order.

ecoTECH (now known as Dong Fang Hui Le Inc.) and three of its top executives, Chief Executive Officer Colin V. Hall, Chief Financial Officer Rolf Eugster and Director Anne Sanders, sold $55,100 worth of securities in 2013 to 16 investors despite a cease trade order issued by the BCSC in 2012. In addition, they failed to tell investors about the order.

Hall, Sanders and ecoTECH – a reporting issuer in B.C. – also distributed $3.3 million worth of securities to 15 people as compensation for services rendered in breach of the order.

By neglecting to inform investors that the shares issued for cash were being issued in violation of a cease trade order, Hall, Eugster, Sanders and ecoTECH committed misrepresentation. The panel stated that “one of the acceptable risks associated with an investment (no matter how risky) cannot be the risk of misrepresentation.”

The panel will impose sanctions after considering submissions from BCSC staff and the respondents.

About the British Columbia Securities Commission (www.bcsc.bc.ca)

The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

A securities market that is fair and warrants public confidence
A dynamic and competitive securities industry that provides investment opportunities and access to capital

SEC Charges Kik Interactive Inc. With Conducting $100 Million Unregistered ICO

June 10, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: business, industry, industry news, investment, investors, management, news, SEC, securities laws, transaction service

Washington D.C., June 4, 2019 — The Securities and Exchange Commission today sued Kik Interactive Inc. for conducting an illegal $100 million securities offering of digital tokens. The SEC charges that Kik sold the tokens to U.S. investors without registering their offer and sale as required by the U.S. securities laws.

As alleged in the SEC’s complaint, Kik had lost money for years on its sole product, an online messaging application, and the company’s management predicted internally that it would run out of money in 2017. In early 2017, the company sought to pivot to a new type of business, which it financed through the sale of one trillion digital tokens. Kik sold its “Kin” tokens to the public, and at a discounted price to wealthy purchasers, raising more than $55 million from U.S. investors. The complaint alleges that Kin tokens traded recently at about half of the value that public investors paid in the offering.

The complaint further alleges that Kik marketed the Kin tokens as an investment opportunity. Kik allegedly told investors that rising demand would drive up the value of Kin, and that Kik would undertake crucial work to spur that demand, including by incorporating the tokens into its messaging app, creating a new Kin transaction service, and building a system to reward other companies that adopt Kin. At the time Kik offered and sold the tokens, the SEC alleges these services and systems did not exist and there was nothing to purchase using Kin. Kik also allegedly claimed that it would keep three trillion Kin tokens, Kin tokens would immediately trade on secondary markets, and Kik would profit alongside investors from the increased demand that it would foster. The Kin offering involved securities transactions, and Kik was required to comply with the registration requirements of the U.S. securities laws.

Steven Peikin, Co-Director of the SEC’s Division of Enforcement
“By selling $100 million in securities without registering the offers or sales, we allege that Kik deprived investors of information to which they were legally entitled, and prevented investors from making informed investment decisions,” said Steven Peikin, Co-Director of the SEC’s Division of Enforcement. “Companies do not face a binary choice between innovation and compliance with the federal securities laws.”
“Kik told investors they could expect profits from its effort to create a digital ecosystem,” said Robert A. Cohen, Chief of the Enforcement Division’s Cyber Unit. “Future profits based on the efforts of others is a hallmark of a securities offering that must comply with the federal securities laws.”

The SEC’s complaint charges Kik Interactive Inc. with violating the registration requirements of Section 5 of the Securities Act of 1933. The SEC seeks a permanent injunction, disgorgement plus interest, and a penalty. The Commission has previously charged issuers in settled cases alleging violations of these requirements, including Munchee Inc., Gladius Network LLC, Paragon Coin Inc. and CarrierEQ Inc. d/b/a Airfox.

The SEC’s investigation was conducted by Brent Mitchell, Jeff Leasure, and James Murtha of the SEC’s Complex Financial Instruments Unit and supervised by Mr. Cohen and Reid Muoio, Deputy Chief of the unit. The litigation will be handled by David Mendel and Stephan Schlegelmilch. The SEC appreciates the assistance of the Ontario Securities Commission.

SEC Awards $3 Million to Joint Whistleblowers

June 7, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: Dodd-Frank Act, investors, law violation, monetary sanctions, SEC, Securities Law, violations, Whistleblowers

Washington D.C., June 3, 2019 — The Securities and Exchange Commission today announced an award of $3 million to whistleblowers whose tip launched the SEC’s investigation and subsequent successful enforcement action involving an alleged securities law violation that impacted retail investors. The whistleblowers submitted their tip jointly to the Commission and will share the award. In this case, the whistleblowers also undertook significant and timely steps to have their employer remediate the harm caused by the alleged violations.

“These whistleblowers showed great tenacity by repeatedly reporting internally and advocating for the firm to disclose the violative conduct and remedy the attendant investor harm,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “Their critical information and assistance helped the SEC bring an important enforcement action aimed at protecting retail investors.”

The SEC has now awarded more than $384 million to 64 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.

As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.

For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.