Research On The Award And Protection Of Securities Whistle-Blower Legal System

This article addresses the importance of research on the award and protection of securities whistle-blower legal system by reviewing the case of JPMorgan,in which the whistle-blowers were awarded by the SEC,and Sherron Watkins's case against Enron Corporation.There are some problems in the current award and protection of securities whistle-blower legal system in China,for example,the securities whistle-blower legal system based on the CSRC Rules is at a low legal level,the awards for whistle-blowers and liability for the leakage of whistle-blowers' identity information remain unclear,and the internal whistle-blowers are lack of support to avoid retaliation from the employers.Those problems make the securities whistle-blower legal system stand idle and fail to function effectively.In the world,the U.S.government stipulated the rules of the award and protection of securities whistle-blower legal system clearly by the Dodd-Frank Act.Japan and South Korea,countries of the same East Asian cultural sphere as China,also made laws to protect the public interest whistle-blowers,and some useful experience is for us to learn from.This article puts forward workable suggestions by studying the foreign award and protection of securities whistle-blower legal system.Firstly,to solve the problem of the source of awards,the securities whistle-blowing awards should be sponsored by the SIPF.Secondly,to ensure justice and transparency,the award standards should be listed.In addition,in order to protect the identity information,any whistle-blower has the right to be represented by counsel,and a transparent liability system for CSRC staffs who leak the whistle-blowers' identity information should be developed.Furthermore,it is necessary to set up a legal labor rights protection system for securities whistle-blowers against employers' retaliation,as well as setting up a support system based on trusting industrial and labor relation to reinstate the whistle-blowers after unfair dismissal and to avoid employers refusing to perform the reinstatement judgments.Moreover,the employers should bear the burden of proof to explain the reason dismissing the whistle-blowers in the labor dispute cases.Finally,civil,administrative and criminal liability for the employers taking retaliatory actions should be clarified.