H.R. 2515 in Support of Efforts by Congress to Protect Whistleblowers (to Congresswoman Maxine Waters and Congressman Patrick McHenry
Summary
SIFMA letter to Congresswoman Maxine Waters and Congressman Patrick McHenry in support of H.R. 2515 and the efforts by Congress to protect whistleblowers from retaliation by their employers for reporting potential violations of the federal securities laws and regulations.
Excerpt
May 8, 2019
The Honorable Maxine Waters
Chairwoman
House Financial Services Committee
Washington, DC 20515
The Honorable Patrick McHenry,
Ranking Member
House Financial Services Committee
Washington, DC 20515
Dear Representative Waters and Representative McHenry,
The Securities Industry and Financial Markets Association (“SIFMA”)1 and its member firms support H.R. 2515 and efforts by Congress to protect whistleblowers from retaliation by their employers for reporting potential violations of the federal securities laws and regulations.
SIFMA has supported and continues to support Congress’ and the Securities and Exchange Commission’s (“SEC”) efforts to identify and address potential violations of the securities laws. SIFMA recognizes the value of robust and effective whistleblower rules. We generally supported the SEC’s current whistleblower rules when they were first proposed in 2010.2 More recently, in response to the SEC’s request for comment on proposed changes to its whistleblower program rules, we provided suggestions on how the SEC can improve the program.3 SIFMA understands that the goal of this bill is to reverse the Supreme Court’s decision in Digital Realty,4 which held that whistleblowers must report to the SEC to be covered by Dodd-Frank’s anti-retaliation.
1 SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate for legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA).
2 Letter from Ira D. Hammerman, Senior Managing Director and General Counsel, SIFMA, to Elizabeth Murphy, Secretary, SEC re: Proposed Rules for Implementing the Whistleblower Provisions of Section 21F of the Securities Exchange Act of 1934 (Dec. 17, 2010), https://www.sec.gov/comments/s7-33-10/s73310-161.pdf.
3 Letter from Ira D. Hammerman, Executive Vice President and General Counsel, SIFMA, to Brent Fields, Secretary, SEC, re: Whistleblower Program Rules (Sept. 18, 2018), https://www.sec.gov/comments/s7-16-18/s71618-4373269-175549.pdf.
4 Digital Realty Trust, Inc. v. Somers, 583 U.S.__ (2018), 138 S. Ct. 767; 200 L. Ed. 2d 15.