US derivatives regulator clears faster payouts for tipster awards under US$5 million
The Commodity Futures Trading Commission (CFTC) has announced plans to automatically award successful whistle-blowers 30% of any enforcement penalties collected if the tipster's award is expected to be US$5 million or less. This change, revealed on September 11, aims to expedite payouts, reduce paperwork, and align the CFTC's whistle-blower program with its counterpart, the Securities and Exchange Commission.
The new rule applies to awards subject to the commission's discretion, and was proposed in June to streamline the process for smaller penalties, which account for over 80% of the CFTC's whistle-blower awards. The Whistleblower Program, established following the 2008 financial crisis, encourages individuals to provide original and timely tips to help the agency tackle misconduct.
CFTC's Whistleblower Office Director, Raagnee Beri, emphasized the importance of the program in supporting the commission's enforcement efforts and encouraging more individuals to report potential wrongdoing.
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