Implementing the Whistleblower Provision of Section 23 of the Commodity Exchange Act

Section 23 of the Commodity Exchange Act, 7 U.S.C. 26, directs that the Commission establish a fund from which to pay awards of 10 to 30 percent of sanctions collected from successful enforcement of covered judicial or administrative actions, or related actions, to individuals who provide information that leads to the successful enforcement of an action in which sanctions exceeding $1,000,000 are obtained. Section 23(c) establishes procedures for the determination or denial of an award. Rules 165.3 and 165.7 implement these statutory provisions. Rule 165.3 establishes the procedures for submitting original information, which enables the Commission to receive whistleblower tips regarding possible violations of the CEA. Ultimately, the receipt of such tips can lead to successful enforcement actions achieving total sanctions in excess of $1,000,000 or related actions. Rule 165.7 establishes the procedures for award applications and Commission award determinations. Rule 165.7 requires the whistleblower to apply for an award, and likewise enables the Commission to make a determination of the amount of an award or denial of an award based upon certain criteria.

The latest form for Implementing the Whistleblower Provision of Section 23 of the Commodity Exchange Act expires 2021-03-31 and can be found here.