The Commodity Futures Trading Commission on Thursday published a Notice of Proposed Rulemaking to amend its whistleblower rules, introducing a 30% presumption for awards where the aggregate statutory maximum is $5 million or less.
In practical terms, where the top possible whistleblower payout in a case is $5 million or below, the Commission would presumptively award a meritorious claimant the statutory maximum. The presumption remains subject to Commission discretion and negative award factors.
The CFTC said the change is modeled on SEC Rule 21F-6(c), which the SEC adopted in 2020. At that time, the SEC said about 75% of its whistleblower awards had been $5 million or less.
“It is critical that our Whistleblower Office promptly and transparently process whistleblower claims,” said Chairman Michael S. Selig. “This is an important additional step towards harmonization with the SEC while advancing the interests of whistleblowers.”
The CFTC said the proposal is intended to improve efficiency, transparency, and predictability in award processing.
The comment period will run for 30 days after publication of the NPRM in the Federal Register. Comments may be submitted through Regulations.gov.
