CCB Whistleblower & Hotline Management 2

Question 1

Under the Dodd-Frank Act, what is the minimum percentage of sanctions a whistleblower must qualify for to receive an award from the SEC?

Accepted Answer

10%

Answer

Dodd-Frank provides whistleblower awards between 10% and 30% of sanctions collected when violations exceed $1 million.

Question 2

Which federal law specifically protects employees of publicly traded companies who report securities violations from retaliation?

Accepted Answer

Sarbanes-Oxley Act Section 806

Answer

SOX Section 806 prohibits publicly traded company employers from retaliating against employees who report securities law violations.

Question 3

A hotline caller reports misconduct anonymously but leaves enough detail to identify themselves. What is the compliance officer's primary obligation?

Accepted Answer

Treat the report as confidential and protect the reporter's identity

Answer

Even when a reporter's identity can be inferred, the compliance function must safeguard that information and treat the report as confidential.

Question 4

What hotline metric best indicates whether employees trust the reporting channel?

Accepted Answer

Ratio of anonymous to identified reports

Answer

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.

Question 5

Which entity administers the whistleblower award program under the Commodity Exchange Act?

Accepted Answer

CFTC

Answer

The Commodity Futures Trading Commission (CFTC) operates its own whistleblower program under the Commodity Exchange Act, parallel to the SEC program.

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Whistleblower & Hotline Management 2