SEC pushes program for whistleblowers

The Securities and Exchange Commission (SEC) is coming out with a whistleblower protection program in an effort to strengthen its enforcement against investment scams, predatory lending practices, money laundering, terrorist financing, market abuse, disclosure violations and other illegal acts.

- By RICHMOND MERCURIO

The SEC has issued for public comment a draft memorandum circular providing guidelines on a whistleblower protection program that safeguards individuals who report such anomalies.

The commission said the move is part of its contribution to corporate integrity and the country's broader anti-corruption and transparency efforts under the United Nations Convention Against Corruption and in coordination with initiatives of the Department of Finance.

"Through the issuance of these whistleblower protection guidelines, we seek to empower victims, market participants and concerned citizens to come forward without fear, report violations of corporate and securities laws, from scams to complex misconduct such as insider trading and failures to disclose beneficial ownership, and join us in our fight against illicit activities that harm financial consumers and erode confidence in our markets," SEC chairman Francis Lim said.