FR 2021-03883

The document under review is a notice from the Securities and Exchange Commission (SEC) inviting public comment on the renewal of certain information collection forms associated with its whistleblower program. This initiative, driven by provisions under the Dodd-Frank Act, underscores the importance of whistleblower incentives in maintaining the integrity of securities markets by rewarding those who report violations. The SEC is particularly interested in gathering feedback on the time and effort required to complete two specific forms: Form TCR and Form WB-APP.

General Summary

The SEC is addressing the public to gather opinions regarding the continuation of existing forms within its whistleblower program under the Paperwork Reduction Act. The forms in question, Form TCR and Form WB-APP, are central to the program's function. Form TCR allows individuals to report securities law violations, while Form WB-APP is used to claim rewards for such reports. The SEC estimates that completing these forms takes approximately 1.5 and 2 hours, respectively.

Significant Issues and Concerns

There are several concerns regarding the document's clarity and accessibility:

• Lack of Clarity and Context: The document does not provide detailed information about the nature or duration of the proposed extension. This omission can lead to confusion among stakeholders trying to understand the implications of this action.

• Complex Language: The use of legal and technical jargon may impede comprehension for readers not versed in legal terminology or SEC proceedings. This could limit the effectiveness of the public consultation process, as potential commenters might struggle to grasp the document's context and content.

• Insufficient Background Information: References to other documents and regulatory releases, such as Release No. 34-64545, without direct links or summaries leave gaps in the narrative that might hinder public understanding and participation.

• Unexplained Burden Metrics: The document mentions an estimated annual reporting burden of 1,270 hours but does not explain how this figure is calculated or its implications for whistleblowers. A clearer explanation could enhance stakeholder understanding of the reporting demands.

Impact on the Public and Stakeholders

Broad Public Impact: The extension of these forms may have limited direct impact on the general public, but by ensuring robust enforcement of securities laws, they help uphold market integrity and protect investors. Encouraging public feedback is vital to ensure that the processes involved in the whistleblower program remain transparent and efficient.

Impact on Specific Stakeholders:

• Whistleblowers: These individuals are directly affected as they are required to fill out these forms to participate in the program. The document suggests that the time to complete the forms may vary based on the complexity of the case, indicating a potential administrative burden for whistleblowers dealing with intricate legal issues.

• Legal and Compliance Professionals: There may be an increased demand on these professionals to assist whistleblowers in navigating the forms and understanding the updated requirements or rule changes. Thus, the clarity and user-friendliness of these documents are vital for effective compliance.

By refining the language and providing comprehensive explanations and easy access to related documents, the SEC could enhance stakeholder engagement and improve the effectiveness of its consultation process. Encouraging a higher level of public participation will ensure that the forms and processes continue to meet the needs of all parties involved, ultimately bolstering the whistleblower program's effectiveness.