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The Morning Risk Report: Whistleblower Program Has Record-Breaking Year |
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U.S. Securities and Exchange Commission building in Washington. The regulatory agency’s Office of the Whistleblower received the most tips and paid out the most in rewards in the program’s six year history. PHOTO: ANDREW HARNIK/ASSOCIATE
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The Securities and Exchange Commission this fiscal year received the largest number of tips from whistleblowers—and paid out the most in rewards—ever, Risk & Compliance Journal’s Mengqi Sun reports.
The SEC awarded more than $168 million to 13 individuals in the fiscal year, which ended Sept. 30. The Office of the Whistleblower also received 5,282 tips during the year—the most in a single year and about 18% more than in 2017. Tips came from individuals in 72 foreign countries and the U.S.
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The agency’s annual report to Congress, published last week, indicates the maturity of the federal whistleblower program, which established the program in 2011 as part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.
Meanwhile, the agency is considering a proposal that would give it more discretion when determining an award amount to those providing tips. Critics of the proposal say it could scale back rewards issued in larger cases, and could stifle potential participation in the program.
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| From Risk & Compliance Journal |
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Bank Boards Continue to Fall Short Against Money Laundering |
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Bank boards of directors aren't engaged enough with concerns about compliance with rules against money laundering and sanctions breaches despite recent scandals, a new survey indicates.
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GE Seeks Power Sales in Iraq, but Report Shows Corruption Concerns |
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Nissan to Remove Carlos Ghosn as Chairman After Misconduct
Probe |
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Nissan Motor Co. said it has uncovered numerous significant acts of misconduct by Carlos Ghosn and intends to oust him as chairman. The statement came amid reports that he was about to be arrested.
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Thousands of Brokers Purge Infraction Records |
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Thousands of brokers scrubbed their records clean of complaints by customers and employers, allowing them to hide information from potential investors, according to a new study.
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SEC Settles Enforcement Actions Over Two Initial Coin
Offerings |
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Two startups that raised money last year through cryptocurrency sales agreed to comply with investor-protection rules and offer money back to thousands of people who bought their digital tokens, marking a new stage in the government’s clash with initial coin offerings.
The settlements with the Securities and Exchange Commission, announced Friday, involve two cryptocurrency firms. In a first, both settlements require the companies to file audited financial statements and other disclosures about their businesses, providing the information that investors typically need to decide if a stock is a good investment.
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Food Regulators to Share Oversight of Cell-Based Meat |
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The U.S. Department of Agriculture and the Food and Drug Administration agreed to share oversight of meat grown from animal cells, moving the emerging technology closer to consumers’ dinner plates.
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Mark Zuckerberg, Facebook’s chief executive and co-founder, told top executives the company must move faster to fix slowing growth and address security weaknesses. PHOTO: DAVID PAUL MORRIS/BLOOMBERG NEWS
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Mark Zuckerberg gathered about 50 of his top lieutenants earlier this year and told them that Facebook Inc. was at war and he planned to lead the company accordingly.
During times of peace, executives can move more slowly and ensure that everybody is on board with key decisions, he said during the June meeting, according to people familiar with the remarks. But with Facebook under siege from lawmakers, investors and angry users, he needed to act more decisively, the people said.
Mr. Zuckerberg’s new approach is causing unprecedented turmoil atop Facebook, driving several key executives from the company, according to people familiar with the matter. At times, it has created tensions with his longtime chief operating officer, Sheryl Sandberg. The June meeting and strains with Ms. Sandberg haven’t been previously reported.
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Apple Suppliers Suffer as It Struggles to Forecast iPhone Demand |
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Lower-than-expected demand for Apple Inc.’s new iPhones and the company’s decision to offer more models have created turmoil along its supply chain and made it harder to predict the number of components and handsets it needs, people familiar with the situation say.
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J.Crew CEO Exits After Clash With Company Board |
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J.Crew Group Inc. CEO James Brett is leaving after about 16 months on the job, following disagreements with the company’s longtime leader, Millard “Mickey” Drexler, about strategy and board concerns about his spending plans.
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Rue21’s CEO Exits After Five Months on Job |
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R21 Holdings Inc., the operator of teen retail chain Rue21, said Laurie Van Brunt has resigned as president and chief executive after five months on the job.
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Volkswagen to Pour Billions Into Electric Cars |
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Volkswagen AG will invest nearly $150 billion over the next five years, with about one-third earmarked for the development of electric cars, self-driving vehicles and digital services, as the German auto maker responds to growing competition from Silicon Valley.
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Spotify, Pandora Turn to Podcasts for Listeners,
Profits |
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Spotify and Pandora are looking to expand beyond music streaming and into the world of podcasting, as they aim to capture more of consumers’ listening time and, eventually, boost their profit margins.
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Subscribe to The Morning Risk Report here.
Follow us on Twitter at @WSJRisk.
Send comments to the Risk & Compliance editor, Jack Hagel, at jack.hagel@wsj.com.
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