CFTC Expands Whistleblower Protections
On Monday, the U.S. Commodity Futures Trading Commission (CFTC) announced changes to its whistleblower rules that will provide better protection for whistleblowers against retaliation. The improved rules also strengthen the process for reviewing whistleblower claims.
The changes will now allow either the CFTC or the whistleblower to bring a claim against an employer for retaliation. The amendments also prohibit employers from preventing would-be whistleblowers from reaching out directly to the CFTC.
“The Whistleblower Program is an integral part of the Division’s efforts to identify and prosecute unlawful conduct. The Commission’s approval of these rules today will further strengthen and enhance our efforts to protect customers and promote market integrity,” said James McDonald, the Director of the Division of Enforcement.
In making these improvements the CFTC aims to “add efficiency and transparency” to the whistleblower awards process, according to its press release. A “Claims Review Staff,” created as part of the new claims review process will issue a “Preliminary Determination” as to whether an award will be granted. If denied, the whistleblower will have the ability to contest the decision before the CFTC.
“The CTFC has significantly strengthened its whistleblower program, including strong anti-retaliation provisions and strengthened provisions for monetary rewards. This is a major step forward, and reflects a growing recognition of the critical role whistleblowers play in detecting fraud,” said Stephen Kohn, a partner at KKC and the pro bono Executive Director of the National Whistleblower Center.
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