The SEC implemented rules this week to create awards for corporate insiders that blow the whistle for violations of federal securities laws. Where the violations result in fines (referred to as "sanctions") of more than $1 million, the whistleblower may be entitled to a bounty of up to thirty percent of those sanctions. http://1.usa.gov/kNvsXz
The SEC's whistleblower program is certain to increase the amount of litigation surrounding alleged securities violations. That was the case when Congress strengthened the whistleblower provisions in the False Claims Act in 1986 to better address federal procurement fraud. False Claims Act litigation ballooned, with whistleblowers receiving in some cases up to thirty percent of the $2.3 billion that the Department of Justice obtain last year in lawsuits whistleblowers initiated. http://1.usa.gov/iwCnVv
SEC whistleblower enforcement actions will likely be document intensive. Just like procurement fraud suits under the False Claims Act, securities violations can involve many players and business units within a company. The ability to timely respond to an internal whistleblower complaint or an external SEC investigation will undoubtedly require a robust document archive and review system.
So the big question is whether you and your company are ready for the bounty hunters? Do you have an archiving and review system in place to assess the stockpiles of data that may be relevant to a whistleblower complaint?
Symantec's Enterprise Vault archiving and review solutions are well suited to address these issues. With Enterprise Vault's Compliance Accelerator, a company can efficiently review its archived data in response to internal compliance investigations. And with Enterprise Vault’s Discovery Accelerator, data relevant to an SEC enforcement action can be culled in a cost effective manner for eventual production. All while the company is efficiently storing that data in the Enterprise Vault archive that must be kept for business, legal or regulatory purposes – and nothing else.
Having Enterprise Vault will thus help a company get ready for this latest regulatory hurdle while keeping the bounty hunters at bay.