FINRA Creates New Office of the Whistleblower
Recognizing the importance of investor complaints and insider tips in the current economic environment, the Financial Industry Regulatory Authority (FINRA) has established a new Office of the Whistleblower to be headed by FINRA Senior Vice President, Cameron Funkhouser. The Whistleblower Office is intended to expedite FINRA’s review of - and significantly - the response to, high-risk investor fraud tips. Indeed, some of FINRA’s most well-known enforcement actions have resulted from complaints or tip-offs, including a 2007 action against Citigroup Global Markets, a $5 million fine against Merrill Lynch in 2006, and a 2002 action against Credit Suisse First Boston.
In a press release issued on March 5th, FINRA’s Interim CEO, Stephen Luparello, stated that “[t]his new initiative will ensure that individuals with significant information will reach senior staff, who can quickly assess the level or risk involved and make sure that each tip is properly evaluated. Those tips warranting additional review and investigation will be subject to an expedited regulatory response.”
View the FINRA press release announcing the new Office of the Whistleblower, here.
