Whistleblowers are not protected under Dodd-Frank if they report internally

The Court of Appeals for the fifth Circuit has narrowly construed the definition of 'whistleblower' under the Dodd-Frank Act 2010 to only apply to whistleblowers who report to the Securities and Exchange Commission (SEC). One of the key provisions of the Act is the anti-retaliation provision which provides for a private right of action against employers who retaliate against the whistleblower such as dismissal, threats or harassment.  The fifth circuit has ruled in Asadi v. GE Energy USA LLC, 2013 U.S. App. LEXIS 14470 (5th Cir. 2013) that this provision only applied to those to report to the SEC, not those who report internally. This ruling is in opposition to almost every other rule on the issue and the SEC itself and is likely to be an issue to courts revisit.

The District court dismissed the case as the Dodd-Frank Act did not protect whistleblowing outside of the United States. The Fifth Circuit however did not address the extraterritorial aspect to the case and dismissed the whistleblower's entitlement to a private action on the basis that the individual had not provided their information to the SEC.

SEC announces new special incentives

The Securities and Exchange Commission (SEC) has announced three new special initiatives: a Microcap Fraud Task Force, a Financial Reporting and Audit Task Force, and a Centre for Risk and Quantitative Analytics. These new groups are to be in addition to the specialised units announced in 2010; Market Abuse, Structured and New Products, Asset Management, Municipal Securities, and Foreign Corrupt Practices Act.

US government may proceed with lawsuit against S&P

The US government has been given permission by the courts to pursue a fraud claim that Standard and Poor's (S&P) manipulated ratings to boost profit an as a result concealed credit risks and conflicts checks. S&P have commented that their "ratings were and are independent and expect to show just that in court".