RCMS RCMS Whistleblower Programs & Reporting Obligations 1

Question 1

Which federal law first established broad whistleblower protections for employees who report corporate fraud at publicly traded companies?

Accepted Answer

Sarbanes-Oxley Act (SOX)

Answer

SOX Section 806 established the first broad federal anti-retaliation protections for employees of public companies who report securities fraud.

Question 2

Under the False Claims Act's qui tam provisions, a private individual (relator) who brings a lawsuit on behalf of the U.S. government may receive what share of recovered funds?

Accepted Answer

15 to 30 percent

Answer

Qui tam relators under the False Claims Act are entitled to 15–30% of recovered funds depending on whether the government intervenes in the case.

Question 3

A compliance officer is designing a whistleblower program. Which feature is most critical to encourage reporting?

Accepted Answer

Anonymity and anti-retaliation protections

Answer

Anonymity and strong anti-retaliation protections are the most critical features because fear of retaliation is the top barrier to reporting misconduct.

Question 4

Which agency administers the whistleblower program under the Commodity Exchange Act (CEA)?

Accepted Answer

Commodity Futures Trading Commission (CFTC)

Answer

The CFTC administers its own whistleblower program under the CEA, offering awards and anti-retaliation protections similar to the SEC's Dodd-Frank program.

Question 5

What is the primary legal protection afforded to internal whistleblowers under SOX Section 806?

Accepted Answer

Protection from termination, demotion, or harassment for reporting suspected fraud

Answer

SOX Section 806 protects employees of publicly traded companies from retaliation including firing, demotion, suspension, and harassment for reporting fraud.

(RCMS) Registered Compliance Management Specialist Certification Practice Test

(RCMS) Registered Compliance Management Specialist Certification Practice Test

RCMS RCMS Whistleblower Programs & Reporting Obligations 1