Comments: supervision of financial enterprises or the introduction of whistleblower reward system

  Indeed, how to conduct effective supervision and compliance management company has been widely discussed。   Currently, the United States, Europe, Japan and China Banking Regulatory System vary widely。 United States and Europe developed body, including the regulatory agencies, the first pass of clues found in private institutions rely mainly on voluntary social enterprise clues to find evidence of illegal。
Then, to report to regulators, regulators to investigate。 Including financial supervision, including China, rely mainly on a large set of monitoring team found the problem。   However, compared with passive regulatory supervision team to rely on external constraints, if we play to their initiative to form active supervision, it is clearly more efficient for industry oversight。 One way to take the initiative, and that the interests of the drive, from this perspective, relying on public and private institutions is for reference selection。   American famous short-seller Muddy Waters and Citron companies often succeed, there is an important reason for short interest, access to huge gains through short selling short。 Previously, a bank branch in a city in the United States due to the anti-money laundering violations were reported internal staff (American), the final report of the Federal Reserve reward employees nearly $ 30 million。
  For this reason, I believe that the timely introduction of whistleblower system more conducive to supervise or conduct business enterprises, especially in the area of financial sector banking, securities, insurance, funds, trusts, etc.。   On specific measures, on the one hand rewards to whistleblowers, this pen can be rewarded based on illegal gains given the right to。
For example, clearly states: 20% of penalty awarded to informants。 Increase the proportion of award shows not only the regulatory authorities to actively encourage people to report violations of determination, but also can improve regulatory efficiency and effectiveness。   On the other hand, to make the resulting report is much higher than the cost of risk。 US regulators rewards to informants reference system point of view, "Dodd Frank Wall Street Reform and Consumer Protection Act" Act Section 922 shows "prohibition of dismissal or discrimination against those who dare to report their employers conduct illegal activities", which means that Wall Street employees do not be afraid because of violations came to light within the company and was fired。   It satisfies the above two requirements in order to be binding from within the enterprise。
The incident, in comparison to protect the demonstration effect of the number of customers of Merrill Lynch millions of assets, formed by three whistleblowers, help to reduce illegal enterprises, is the larger significance。   □ Yufeng Hui (financial commentators)。