SEC Exams Focus on Whistleblower Compliance by Investment Advisers and Brokers
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Key takeaways
- SEC Examination Staff are reviewing investment advisers and other registered entities for compliance with whistleblower protection regulations. Specifically, they are looking for employment and severance agreements and other policies and procedures that can be read to interfere with or discourage would-be whistleblowers.
- The protection of potential whistleblowers has also been a recent focus of the SEC’s Division of Enforcement, which has brought actions against employers challenging employment and severance agreements.
- We advise employers, especially investment advisers, to review all contracts with their current and former employees to ensure that they do not contain provisions that could be read to discourage or interfere with protected whistleblowing activities.