WASHINGTON – Sens. Chuck Grassley (R-Iowa) and Elizabeth Warren (D-Mass.) reintroduced legislation to strengthen whistleblower protections at the U.S. Securities and Exchange Commission (SEC). The bipartisan SEC Whistleblower Reform Act of 2023 would ensure timely processing of whistleblower claims and protect whistleblowers from retaliation. The bill’s reintroduction comes amid Sunshine Week, which celebrates the public’s right to a transparent and accountable government.
 
Sens. Susan Collins (R-Maine), Raphael Warnock (D-Ga.) and Catherine Cortez Masto (D-Nev.) are also cosponsors.
 
“Whistleblowers bring sunshine to the corners of our government and the private sector where waste, fraud and abuse are taking place in the shadows. The American people have whistleblowers to thank for recovering billions of valuable taxpayer dollars. I’m proud to once again lead this push for greater government accountability by protecting the whistleblower process at the SEC,” Grassley said.
 
"Whistleblowers play a crucial role in Congressional efforts to prevent waste, fraud, and abuse and to help ensure the effectiveness of government programs. They provide crucial information that Congress needs to conduct proper oversight of the federal government," Collins said. "By improving protections for whistleblowers at the SEC, our legislation would support a culture of transparency and ultimately strengthen the agency’s mission to protect investors and markets.”
 
“Whistleblowers who expose wrongdoing and fraud should not be held back out of fear of retribution, and I’m proud to support this legislation to ensure they are protected at the SEC,” Cortez Masto said. “I’ve consistently stood up for whistleblowers and I’ll continue to work on bipartisan solutions to protect consumers and combat fraud.”
 
Specifically, the SEC Whistleblower Reform Act of 2023 would:
 
·         Protect whistleblowers from retaliation if they report violations to a direct superior. Currently, they are only protected if they report directly to the SEC or certain select officials.
·         Ensure that claims and awards are processed in a timely manner. Although the SEC has improved, it  previously had a several-years-long backlog of claims.
·         Clarify that whistleblowers cannot waive their rights through a predispute arbitration agreement.
 
Since Grassley helped create the SEC’s whistleblower program in 2010, it has achieved tremendous success. The SEC reported receiving a record number of whistleblower tips in Fiscal Year 2022 – over 12,000 tips in just one year – and has collected more than $6.3 billion in fines since the program was established.
 
The full text of the bill is available HERE.

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