However, encouraging more tips, rather than focusing on ways to improve the quality of the massive number of tips the SEC already receives, may bog down a program that already appears to struggle.
As it happens, the SEC only investigates a small number of the tips it receives, and only an infinitesimal number of the tips actually result in awards.
This suggests that the SEC expends resources responding to tips that ultimately have no merit. Given the high number of “meritless tips,” the bounty program could benefit from reform in 2020.
‘Enforcement 40’ for 2020
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