HB 2327 -- Missouri Securities Act

Sponsor:  Lipke

This bill changes the laws regarding the Missouri Securities Act.
In its main provisions, the bill:

(1)  Establishes the Whistleblower Program to receive and
evaluate information received from individuals voluntarily
disclosing potential securities violations while, as appropriate,
maintaining the confidentiality or anonymity of those
individuals;

(2)  Allows the Commissioner of Securities within the Office of
the Secretary of State to pay a monetary award from the Investor
Education and Protection Fund to certain whistleblowers providing
information leading to the successful resolution of an
administrative or civil enforcement action of up to 30% of the
monetary sanctions imposed in the enforcement action.  No award
will be given to any member, officer, or employee of any
regulatory agency or to a whistleblower who is convicted of a
criminal violation related to the action or who fails to submit
information in an acceptable or useable manner to the
commissioner;

(3)  Requires the commissioner to inform the public of the
program and make available a toll-free number and allows the
commissioner to establish incentives for individuals and
companies to fully and truthfully cooperate and assist with
investigations and enforcement actions;

(4)  Requires every broker-dealer, investment advisor, issuer,
firm, or any other person who employs an individual engaged in
the business of effecting transactions in securities or advising
others as to the value of securities to post and keep posted on
its premises, in conspicuous places where employees are employed,
a notice regarding the whistleblower program.  The information
must also be provided to all new employees;

(5)  Prohibits any broker-dealer, investor advisor, issuer, firm
or other person who employs an individual engaged in the business
of effecting transactions in securities or advising others as to
the value of securities from discharging, demoting, suspending,
threatening, harassing, or discriminating against a whistleblower
regarding his or her employment for lawfully providing
information under this program.  Any whistleblower alleging
discharge or discrimination may bring an action in the
appropriate court seeking necessary relief including
reinstatement of seniority; back pay with interest; and
compensation for litigation costs, expert witness fees, and
attorney fees; and

(6)  Requires information delivered to the commissioner by the
whistleblower to be confidential and privileged as an evidentiary
matter and must be exempt from disclosure unless and until
required to be disclosed to a defendant or respondent in
connection with a public proceeding instituted by the
commissioner or any other agency or regulatory entity or unless
the commissioner deems it necessary to protect investors.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:13 pm