The Capital Markets Authority (CMA) will reward a Whistleblower up a maximum of KSh 5 Million or 3% of the amount recovered.
This is according to Capital Markets (Whistleblower) Draft Regulations 2021.
The legal notice, drafted by the CS National Treasury, mentions that a Whistleblower who willingly gives information or evidence to CMA leading to a successful recovery of penalties or illicit gains within capital markets will be rewarded.
The reward will be given to the Whistleblower as soon as the Authority recovers the loot, subject to tax deductions. The recovered sum shall be transferred into the Investor Compensation Fund, net of the Whistleblower reward.
A Whistleblower may confidently report any reportable misconduct anonymously or in-person through any of the Authority’s communication channels.
Reportable misconduct includes failure to comply with legal and regulatory obligation or Capital Markets fraud.
CMA requirements for information from whistleblower
The report will provide substantial details of the alleged misconduct or offence and include any crucial evidence that may assist the Authority in its investigations of the crime or wrongdoing.
The report must be new and timely, authentic complete and relevant and must not be false as this will attract penalties.
The Authority will protect the Whistleblower’s identity and will only disclose it through court order or as required by law.
Any person aggrieved by the Authority’s decision may appeal to the Capital Markets Tribunal within 15 days from the date of such a decision.
Section 34 A of the CMA Act spells out that a person who submits false information to the Authority will be committing an offence and is liable for conviction.
The Whistleblower must declare that the information provided is accurate and correct as well as complete.