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CFTC Authorized to File Whistle-Blower Retaliation Claims 

May 23, 2017

Richard Hill, Bloomberg BNA

The CFTC may file enforcement actions against employers that retaliate against whistle-blowers, under rule changes adopted May 22.

The amendments to the Commodity Futures Trading Commission’s whistle-blower regulations also bar employers from preemptively forbidding their employees to communicate with the agency. The new rules, adopted unanimously by the two-member commission, additionally create a claims review process that will make initial determinations about whether a whistle-blower award should be granted or denied.

The rule amendments are intended to nudge reluctant whistle-blowers into coming forward with their suspicions. Companies, however, may be concerned that would-be whistle-blowers will be further encouraged to bypass internal compliance procedures and go straight to the government with insider information.

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