September 14, 2018
I would like to better understand why the SEC is proposing these rule changes. Unlike other rule proposals, these changes appear to be rushed, not based on fact and formed based off personal opinions.
One specific area I would like to comment on is the following:
-Why is the SEC seeking the ability to summarily dismiss claims? And Why does the SEC claim that this ability to dismiss claims will reduce the backlog of whistleblower claims?
In practice, the SEC places these 'frivolous' whistleblower claims at the very back of the claims adjudication queue. Given such, it is unclear how the ability to summarily dismiss claims will actually increase the efficiency of whistleblower operations.
In fact, the process of conducting a summary dismissal may be more time consuming than simply placing these 'frivolous' claims at the very back of the queue and only allocating time and resources to 'non-frivilous' claims.
If the SEC is confident that these proposed rule changes will reduce the backlog, could the SEC please disclose a quantifiable amount of impact? Will these rules reduce the backlog by 6 months, 12 months, etc.
As other commenters have pointed out, at the current rate of claim adjudication, it could take multiple decades for a whistleblower to have his claim adjudicated. This is a serious problem, so rather than taking a stab in the dark, as these proposed rules do, I would like to SEC to set a goal, such as 95% of whistleblower claims adjudicated within 12 months, and take the necessary steps to make that goal a reality.