CFTC wants to protect whistleblowers against retaliation

The Commodity Futures Trading Commission (CFTC) has proposed regulatory changes that will give the agency the enforcement authority to punish companies that retaliate against whistleblowers. Since the whistleblower program was established in 2011, whistleblowers only recourse was to initiate a retaliation claim. . In contrast, U.S. Securities and Exchange Commission (SEC) has stressed that it will pursue companies that retaliate against whistleblowers. The CFTC stated in its Notice for Public Comments that “the Commission is taking a necessary step to end the incongruous situation where whistleblowers enjoy protection from retaliation through SEC enforcement action under the securities laws, but no such protection through Commission enforcement action under the CEA [Commodity Exchange Act].” The proposed CFTC amendments will align the Commodity Agency’s program with the tougher stance taken by the SEC and will give whistleblowers greater protection against retaliation.

Under the CFTC’s Whistleblower Program, whistleblowers may receive between 10 and 30 percent of the amount collected by the Government when they voluntarily provide the CFTC with original information about violations of the Commodity Exchange Act that leads to a successful enforcement action and monetary sanctions over $1,000,000. Earlier this year, the CFTC issued its largest award of over $10 million to a whistleblower.