The Dodd-Frank Act authorizes the SEC to pay whistleblowers for information about violations of U.S. securities laws if the information leads to a successful prosecution or civil suit. Directors and in-house counsel have expressed concern that such financial incentives could compromise the effectiveness of companies’ in-house whistleblowing procedures by encouraging employees to bypass them in favour of direct reporting to the SEC, especially given that the potential payments by the SEC are substantial: between 10% and 30% of the penalty paid by the defendant in the relevant proceeding. The SEC is required to adopt rules implementing the Dodd-Frank whistleblower program by March 2011.