Whistleblower program rules approved by SEC

5/27/2011

WASHINGTON — A divided U.S. Securities and Exchange Commission approved rules this week to create a $300 million whistle-blower program.

Supporters said it would help the agency crack down on wrongdoing, but opponents contend it would hamper the ability of companies to police themselves.

The rules included several changes from an initial proposal last year after passage of the Dodd-Frank regulatory law that provided for the program. One change included a potential bonus if employees first report suspected wrongdoing through their company’s compliance system.