Federal & State

Regulatory Agencies
The Investor Protection Act expands the authority of the U.S. Securities and Exchange Commission (SEC), in any action in which it levies sanctions in excess of $1,000,000, to compensate whistleblowers with up to 30% of the amount of the sanctions. Within these parameters, the amounts paid to whistleblowers under the Act would be within the sole discretion of the SEC and not subject to judicial review. This Act greatly expands the SEC’s current authority under the Exchange Act, which caps such compensation at 10% of collected penalties, and restricts it to the insider trading context. The Act also establishes an Investor Protection Fund, intended to grow to a maximum of $100,000,000 through revenues from certain sanctions, to pay awards to whistleblowers and to fund investor education initiatives.

zEthics, Inc. appreciates the opportunity to work with the U.S. Securities and Exchange Commission, the Department of Justice as well as State and Federal Regulatory Agencies to capture the information necessary to issue monetary sanctions that could add as much as $100 million dollars to the Investor Protection Fund as provided for in the Investor Protection Act.