Under SEC Rules Implementing Dodd/Frank, Whistleblower Bounty Program Cash Awards not Available to SEC Counsel.
On May 25, 2011, the Securities and Exchange Commission adopted final rules to implement the Section 21F of the Securities Exchange Act of 1934 entitled “Securities Whistleblower Incentives and Protection.” Although the new rules have significant implications for public companies and securities industry businesses, they won’t affect the privacy afforded by the attorney-client privilege you have with your SEC counsel.
Under the whistleblower rules adopted by the SEC, individuals who report evidence of securities law violations to the SEC and other agencies will be rewarded with potentially large cash bounties if the information leads to successful enforcement actions. But the SEC rules exclude attorneys from qualifying for whistleblower awards. The SEC will not in general consider information obtained through attorney-client privileged communications.
This one they got right.