Financial analysts are a select group of professionals who through their expertise often have original information of fraud in the financial market. For this reason, the SEC and CFTC encourage financial analyst whistleblowers to expose significant financial fraud. Further, both agencies use anonymous whistleblower reward laws to encourage financial analysts to expose hard to detect fraud.
Financial Analysts and Money Managers Commonly Have Specialized Knowledge of Significant Financial Fraud
Because of their expertise, financial analysts commonly detect significant fraud schemes in the financial markets. SEC and CFTC bounty actions want this specialized knowledge and are offering financial rewards for it.
More specifically, a financial analyst’s independent analysis of the financial markets often detects market manipulation and other investment fraud schemes. This original information can be the basis of SEC and CFTC bounty actions which pay large financial rewards. As such, financial analysts, money managers, and other financial professionals have a strong economic incentive to expose significant fraud.
SEC and CFTC Bounty Actions Offer Protections to Financial Analyst Whistleblowers
Further, these bounty actions offer whistleblower protections to financial professionals. More specifically, the whistleblower reward laws allow whistleblowers to expose fraud anonymously. Financial analysts need to report the fraud through a lawyer in order to report the fraud anonymously.
The laws also protect financial analysts from retaliation including termination. Further, the laws prevent companies from requiring employees or former employees signing away their bounty action rights. Therefore, former and retired financial professionals retain their right to expose fraud through bounty actions. Further, companies that block this right through severance agreements can be held liable for damages.
More Information on Anonymous Financial Analyst Bounty Actions and other Anonymous Bounty Actions
For more information on this topic, please go to the following webpages: Financial Analyst Whistleblower Reward Information and SEC and CFTC Bounty Actions.