On Nov. 12, the SEC released for public comment a draft memorandum circular outlining the guidelines for whistleblower protection.
The initiative forms part of the Commission’s broader push for corporate integrity and aligns with global anti-corruption efforts under the United Nations Convention against Corruption and the Department of Finance’s transparency programs.
Whistleblowers’ role
“Financial consumers, investors, and corporate insiders all play a vital role in safeguarding the integrity of our financial and corporate sectors,” SEC Chair Francis Lim said in a statement.
“Their willingness to expose wrongdoings forms part of our defense against fraud, market abuse, failures in disclosure, and other illegal acts,” Lim said.
He added that the proposed guidelines aim to empower victims, market participants, and concerned citizens to report violations without fear of retaliation—whether these involve investment scams, insider trading, market manipulation, or failures to disclose beneficial ownership.
Under the draft rules, a whistleblower is defined as any person who provides truthful information related to a reportable act or omission to the SEC.
“Financial consumers,...
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