The Securities and Exchange Commission (SEC) has released draft guidelines aimed at strengthening its whistleblower protection program, part of a broader effort to crack down on investment scams, market abuse, money laundering, predatory lending, disclosure violations and other financial crimes.
The draft memorandum circular, now open for public comment, outlines how the SEC will protect individuals who report violations of corporate and securities laws. SEC chairman Francis E. Lim said whistleblowers—including investors, consumers, and corporate insiders—are essential in exposing fraud and other illegal activities.
Under the proposal, a whistleblower is anyone who provides truthful information about reportable offenses under the Revised Corporation Code. These may include fraudulent business practices, insider trading, market manipulation, failure to disclose beneficial ownership, misuse of corporate names, and submitting false or misleading corporate reports.
The guidelines promise protection from retaliation and set out multiple reporting channels. Whistleblowers may file reports through a new Whistleblowing Portal on the SEC website, a chatbot, email, phone, or the SEC Check mobile app. Reports may also be submitted by mail or in person at SEC offices nationwide.
Anonymous reports will be accepted if they contain verifiable details such as a corporation’s name and address, the alleged violations, and the specific actions involved. Anonymous whistleblowers may provide confidential contact information if they choose.
The proposal also creates a dedicated Whistleblowing Office, which will handle reports and ensure whistleblower protections are properly implemented.
