In September 2023, the Securities and Exchange Commission (SEC) announced three separate enforcement orders reflecting a renewed interest in and scrutiny of provisions in employment agreements and separation agreements. These three settled cases resulted in cease-and-desist orders, fines, and other sanctions against a registered investment adviser, a public company, and a privately held company in connection with provisions in employment and separation agreements the SEC deemed violated Rule 21F-17(a), which protects against actions taken to impede whistleblowers.
SEC Broadens Scrutiny of Employment and Separation Agreements Under Whistleblower Rule
