Whistleblower & Hotline Management Flashcards
7 cards from real CCB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Whistleblower & Hotline Management flashcards as text
Under the Dodd-Frank Act, what is the minimum percentage of sanctions a whistleblower must qualify for to receive an award from the SEC?
Answer: 10%
Dodd-Frank provides whistleblower awards between 10% and 30% of sanctions collected when violations exceed $1 million.
Which federal law specifically protects employees of publicly traded companies who report securities violations from retaliation?
Answer: Sarbanes-Oxley Act Section 806
SOX Section 806 prohibits publicly traded company employers from retaliating against employees who report securities law violations.
A hotline caller reports misconduct anonymously but leaves enough detail to identify themselves. What is the compliance officer's primary obligation?
Answer: Treat the report as confidential and protect the reporter's identity
Even when a reporter's identity can be inferred, the compliance function must safeguard that information and treat the report as confidential.
What hotline metric best indicates whether employees trust the reporting channel?
Answer: Ratio of anonymous to identified reports
A high ratio of anonymous reports relative to identified ones signals low trust; a shift toward identified reports typically reflects growing confidence in non-retaliation.
Which entity administers the whistleblower award program under the Commodity Exchange Act?
Answer: CFTC
The Commodity Futures Trading Commission (CFTC) operates its own whistleblower program under the Commodity Exchange Act, parallel to the SEC program.
An employee files an internal hotline report and then, one week later, files an SEC tip. Which protection regime applies to retaliation that occurs after the SEC filing?
Answer: Both SOX and Dodd-Frank may apply depending on the facts
Both SOX and Dodd-Frank anti-retaliation protections can apply concurrently; courts analyze each statute's coverage independently.
What is the primary purpose of a 'speak-up' culture survey administered alongside a hotline program?
Answer: Assess employee willingness to report and perceived safety
Speak-up culture surveys measure employees' comfort with reporting misconduct and confidence that they won't face retaliation, informing program improvements.