The US Commodity Futures Trading Commission has approved a final rule establishing a 30 per cent presumption for whistleblower awards of 5 million dollars or less. While the commission retains discretion to lower the rate based on specific factors, the measure aims to make claim reviews more predictable and align CFTC practices with those of the Securities and Exchange Commission.
The Commodity Futures Trading Commission, which regulates US futures markets, has approved a final rule that sets a 30 per cent presumption for whistleblower awards amounting to 5 million dollars or less. This maximum-rate presumption is expected to make the review of eligible claims more predictable. The regulatory change will officially take effect 30 days after its publication in the Federal Register.[1], [2]
Although the rule sets a baseline expectation, the 30 per cent figure does not constitute an automatic payment. The commission's standard regulatory factor analysis remains applicable, allowing the agency to apply a lower rate if certain conditions are met. Reductions may occur due to negative factors, limited assistance from the whistleblower, broader public interest considerations, or specific programme objectives.[1], [2]
The finalized framework intentionally brings the CFTC's approach closer to the comparable mechanism used by the Securities and Exchange Commission, harmonising the policies of the two financial regulators. CFTC Chairman Michael S. Selig noted that the new rule will assist the whistleblower office in processing claims promptly and transparently. Additionally, Whistleblower Office Director Raagnee Beri emphasized that the underlying programme continues to play an important role in supporting the agency's enforcement efforts.[1], [2]
