Will Dodd-Frank Whistleblowers Bypass Compliance Officers?

According to the Washington Post, the Dodd-Frank Wall Street Reform and Consumer Protection Act includes whistleblower provisions that are causing some corporations to rethink their internal compliance policies. The so-called bounty program provides for whistleblowers to receive up to 30% of enforcement actions exceeding $1 million, which some say will incentivize employees to go directly to the SEC rather than to internal compliance officers. While the SEC hasn’t developed the necessary rules to implement the provision, companies are already reviewing employee complaint processes and procedures.