skip to navigation
skip to content

Financial Outsourcing Solutions

Corporate People

FOS Blog

04 May

Whistleblower Program Revisited

Whistleblower Program Revisited

On February 21, 2018, the verdict in Digital Realty Trust, Inc. v. Somers limited the definition of a whistleblower under the Dodd-Frank Act. The wrongful termination suit was filed by Paul Somers, subsequent to his internal reporting that his supervisor at Digital Realty Trust, was committing fraud.  The whistleblower program created in 2010, protects whistleblowers from retaliation by employers in return for the information they provide. However, the verdict delineated that only those that file their complaints directly to the Securities and Exchange Commission (SEC) are protected by the Dodd-Frank Act. Protections for employees that report violations of the Consumer Financial Protection Act, laws under the jurisdiction of the Consumer Financial Protection Bureau (CFPB), and CFPB’s rules are still pertinent.

Due to the complexity of the Act and its interpretations, it is recommended that Financial Institutions revisit their whistleblower program and ensure that first and most important, it inspires their employees trust and confidence that their concerns will be heard and addressed. In addition, Financial Institutions should ensure the program includes the regulatory update and explains the regulatory process employees should follow when reporting suspected violations should an employee consider such action is appropriate.

These steps will ensure employees understand the protections available to them and are adequately trained to report violations.

For additional information contact