CFTC Whistleblower Program Guide: Eligibility, Rewards and Protection

The CFTC Whistleblower Program is designed to encourage individuals to come forward with information about potential wrongdoing in the commodities and futures markets. To be eligible, you must submit information to the CFTC in a confidential manner.

The CFTC protects the identities of whistleblowers through various measures, including the use of pseudonyms and secure communication channels. This ensures your safety and security throughout the process.

Whistleblowers can submit information anonymously, but this may impact the potential reward. To be eligible for a reward, you must submit information in a way that allows the CFTC to contact you.

The CFTC offers rewards to eligible whistleblowers, with potential awards ranging from 10% to 30% of the total amount collected in a case. The exact percentage depends on the CFTC's determination of the whistleblower's contribution to the case.

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The CFTC Whistleblower Program is a vital tool for protecting the integrity of the US derivatives markets.

The program was created in 2010 to reward individuals who provide original information that leads to the successful enforcement of a CFTC action resulting in monetary sanctions exceeding $1 million.

Whistleblowers can submit tips to the CFTC anonymously.

Awards can range from 10% to 30% of the total monetary sanctions collected in a case.

The CFTC has already awarded over $200 million to whistleblowers since the program's inception.

To be eligible for a CFTC whistleblower award, you must voluntarily provide original information about a violation of the Commodities Exchange Act (CEA).

You don't have to be a U.S. citizen or resident to qualify, but you must have independent knowledge or analysis of the information.

The CFTC defines "original information" as information not already known to the Commission, derived from your independent knowledge or analysis.

To qualify, your information must be specific, credible, and timely, and must lead to the CFTC opening an investigation, re-opening a closed one, or pursuing a new avenue in an ongoing investigation.

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You can't submit duplicate information or acquire it illegally to be eligible for an award.

You must also understand the confidentiality and protections available to you under the CFTC whistleblower program before submitting a tip.

To submit a tip, you must first understand whether you've identified a potential violation of the Commodity Exchange Act and have a full understanding of the protections available to you.

You can submit a tip to the CFTC voluntarily, before they request the information from you or your employer.

To be eligible for a whistleblower award, you must submit a Form TCR (Tip, Complaint, or Referral) electronically, by fax, or by mail.

The Form TCR requires an extensive amount of information, so it's recommended that you work with experienced legal counsel to ensure you complete it correctly.

You must sign the Form TCR under penalty of perjury, and if you're implicated in the fraud or wrongdoing, you must be careful not to expose yourself to civil or criminal liability.

You can submit a Form TCR anonymously, with or without legal counsel, but the agency may require your attorney to confirm your identity if you're awarded a payment.

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Reporting internally to your company is not required to be considered for an award, but if you do report internally, you have 120 days to also report it to the CFTC to maintain eligibility for an award.

Internal reporting can lead to retaliation, but don't worry, you're protected. Employers are prohibited from retaliating against employees who report violations to the Commission, or who assist in an investigation.

Retaliation includes actions like firing, demotion, suspension, threats, or harassment. If you experience retaliation, you may be entitled to reinstatement, backpay, and interest, or other forms of compensation for any damages sustained.

The CFTC Whistleblower Program offers three layers of protection to guard against retaliation. You can file your complaint confidentially and anonymously, and the CFTC will treat your identity and information as confidential.

Here are some key dates to keep in mind:

As a whistleblower, you're protected from retaliation, but it's essential to understand the specifics of this protection. The CFTC Whistleblower Program offers three layers of protection to safeguard against retaliation.

You can submit information to the CFTC anonymously, which is a crucial feature of the program. This helps minimize the potential for career harm and encourages insiders with access to critical information to come forward.

Employers are prohibited from retaliating against employees who report violations to the Commission, or who assist in an investigation. This includes actions like firing, demotion, suspension, threats, or harassment.

Retaliation protection applies even if the employee doesn’t qualify for an award. Whistleblowers may receive reinstatement, backpay, and interest, or other forms of compensation for any damages sustained as a result of retaliation.

To file a claim in federal district court, action must be filed within two years of the employer’s retaliatory act. Here are some key points to keep in mind:

Reporting your concerns internally first is not required to be eligible for a whistleblower award, but it's worth noting that many internal compliance programs are put in place to protect the company's interests, not the whistleblower's.

Internal reporting can lead to retaliation, so it's essential to consider the potential risks. You have 120 days to report your concerns externally to the CFTC if you've already reported internally to your supervisor, audit committee, chief counsel, or chief compliance officer.

If your company has an internal compliance program, participating in it may be used to determine your award percentage if your information leads to successful sanctions.

Providing information to the CFTC must be done voluntarily to be eligible for a whistleblower award. This means you must provide the information before the CFTC sends you a request for it.

To be considered voluntary, your submission must be made before any request or demand from relevant authorities. This is crucial, as it ensures that you're not being forced to provide information.

You can voluntarily submit information to the CFTC if you have independent knowledge or analysis that reveals information not generally known to the public. This could be information you've gathered on your own or through your work.

To qualify for a whistleblower award, you must provide original information that is not already known to the CFTC. This means you must be the original source of the information or have independent knowledge that reveals something new.

Here are the key requirements for a voluntary submission:

The CFTC Whistleblower Program offers a reward to those who provide information that leads to successful enforcement actions. The reward can be up to 30% of the monetary sanctions collected.

To be eligible for a reward, you must submit a complaint to the CFTC using their Form TCR, which can be done electronically, by fax, or mail. This form requires an extensive amount of information, so it's recommended to work with an experienced whistleblower attorney.

The CFTC evaluates various factors to determine the exact award percentage, including the timeliness of the disclosure, the degree of further assistance provided, and the whistleblower's culpability in the violations. Positive factors may include the significance of the information provided and the overall interest the CFTC has in deterring violations of the commodities laws.

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Here are some notable awards made by the CFTC:

If your original information led to a judicial or administrative order resulting in monetary sanctions exceeding $1,000,000, you may be eligible for an award between 10% and 30% of the sanctions collected.

To file a whistleblower complaint with the CFTC, you'll need to submit a Form TCR (Tip, Complaint, or Referral) after identifying a potential Commodity Exchange Act violation. The CFTC Whistleblower Office will confirm receipt in writing and provide a confirmation number.

You can file anonymously with or without legal counsel, but if you use an attorney, they'll need to confirm your identity if you're awarded a payment. The agency takes confidentiality seriously, so don't expect updates on your complaint's status.

To be eligible for an award, you must assist the CFTC staff with pursuing a successful enforcement action. The more help you provide, the greater your percentage of the CFTC's recovery will be if the action is successful.

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There are no guarantees of an award, but working with experienced legal counsel can increase your chances of securing one. Your lawyer can help assess your likelihood of receiving an award and guide you through the process.

The CFTC posts a Notice of Covered Action for every enforcement action resulting in over $1 million in sanctions. You have 90 days from the posting date to submit an award application (Form WB-APP).

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The CFTC Whistleblower Program was enacted as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010.

This program was created in response to the 2008 financial crisis, with the goal of reinforcing financial regulation and empowering the CFTC's authority to oversee the swaps market.

The Dodd-Frank Act amended the Commodity Exchange Act by adding Section 23, the "Commodity Whistleblower Incentives and Protection", which governs the Whistleblower Program.

The Whistleblower Rules went into effect in October 2011 and were amended in July 2017 to provide clearer guidelines for prospective whistleblowers.

In the 2020 fiscal year, the CFTC awarded 6 whistleblowers a total of over $3 million, with many of these awards going to individuals who first made their disclosures to other agencies like the U.S. Securities and Exchange Commission.

The CFTC Whistleblower Program issues Final Orders addressing whistleblower award applications, with 65 such orders issued in the 2021 fiscal year.

The Customer Protection Fund is used to pay out all CFTC whistleblower awards, but a large award in 2021 threatened to deplete the fund, prompting emergency legislation to create a separate fund for the Office of the Whistleblower's operations.

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