Senate Unanimously Approves Bill to Repeal Dodd-Frank Provision Granting Confidentially for SEC Investigations

The Senate unanimously approved Bill S.3717, which would repeal provisions in section 929I of the Dodd-Frank Act that grant confidentiality to SEC investigations of fraud committed by publicly-traded companies.  Under Section 929I, the SEC cannot be compelled to disclose information provided to the SEC by whistleblowers; however, the SEC must still comply with the information requests made by Congress, Federal agencies, or a court order in an action brought by the United States or SEC.  The new Senate Bill would replace this confidentiality provision with one clarifying that Exemption 8 of the Freedom of Information Act applies to SEC investigations.   Exemption 8 protects matters that are “contained in or related to examination, operating, or condition reports prepared by, on behalf of, or for the use of an agency responsible for the regulation or supervision of financial institutions.”

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Tagged: Dodd-Frank Act, Whistleblower Laws (Federal)