While the Trump administration seems poised to scale back on corporate enforcement, legal experts are warning that companies still need to bolster their own internal whistleblower programs, a new article by the Financial Times’ Agenda details.
According the article, “President Donald Trump’s administration may take a new approach to corporate enforcement, but that doesn’t mean companies should start taking a lax approach to
internal whistleblower programs.”
“Whistleblowers will still come forward with tips if they suspect wrongdoing, and companies risk getting hit with massive fines from regulators if they don’t create and maintain internal whistleblower programs, sources said. In fact, over 80% of whistleblowers bring their concerns to supervisors and internal channels before going to the government,” the article states.
The article features insights from leading whistleblower attorney Stephen M. Kohn of Kohn, Kohn & Colapinto. Kohn explains how under new leadership, the U.S. Securities and Exchange Commission (SEC) may curb its hugely successful whistleblower program.
“If those in authority wanted to essentially stifle and destroy the program, they have that discretion, and it can be fought legally, but it would take years to fix it,” Kohn said.
The article continues: “Companies, however, should not take a shift in enforcement as a pass to demobilize their internal whistleblower programs. Boards, if they create and invest in truly anonymous internal whistleblower resources for employees, can address issues at their companies and mitigate regulatory risk, Kohn said.”
Read the full article:
Boards Urged to Invest in Whistleblower Programs Despite Looming Enforcement Shift
