Tariffs-Free Regulatory Importing?
Asad Akhtar
Compliance and Internal Audit Personnel
At prima facie, compliance/internal audit personnel and public accountants working on
SEC engagements are also deemed ineligible candidates. However, under certain circumstances
these individuals may be considered eligible for an award.48
2. Original Information
Original information is defined in the Final rules as: (i) is derived from the independent
knowledge or analysis; (ii) is not known to the SEC from any other source, unless the
whistleblower is the original source of the information; and (iii) is not exclusively derived from
an allegation made in a judicial or administrative hearing, in a governmental report, hearing,
audit, or investigation, or from the news media, unless the whistleblower is a source of the
information.49
3. Anti-Retaliation Provisions
A. Introduction under SOX
Anti-retaliation provisions were initially introduced under SOX for employees of public
companies who reported fraud to the SEC. Under SOX, §. 806 explicitly barred employers from
discharging, demoting, suspending, threatening, harassing or discriminating against employees
who furnished information to the SEC that they thought was fraudulent behavior.50 A violation
of this provision allowed employees to file a complaint with the Department of Labour and seek
48
The circumstances are provided within the Final Rule and includes: the individual believes disclosure will prevent
substantial injury to the financial interest of investors, the individual believes the entity is engaging in conduct that
will impede an investigation, or at least 120 days have elapsed since the individual reported the information, or
became aware it was reported, to his/her supervisor, chief legal officer, entity’s audit committee or chief compliance
officer. Finally, the Final Rule prohibit culpable individuals from receiving an award that offsets monetary
sanctions that would result from an SEC action again st that same individual.
49
Supra, note 46 at § 240.21F-4(b).
50
Supra, note 37 at 195.
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