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SEC Whistleblower Reform Act of 2025
4/10/2025, 12:38 PM
Summary of Bill S 1149
The Whistleblower Protection Act is designed to encourage individuals to report securities violations by providing them with legal safeguards against retaliation from their employers. This includes protections such as reinstatement, back pay, and compensation for any damages suffered as a result of retaliation.
In addition to enhancing anti-retaliation protections, the bill also includes provisions for other purposes related to whistleblower protections. These may include measures to improve the reporting process for whistleblowers, increase transparency in investigations of securities violations, and strengthen enforcement mechanisms to hold wrongdoers accountable. Overall, Bill 119 s 1149 represents a significant step towards bolstering whistleblower protections in the securities industry and promoting a culture of accountability and transparency. By providing whistleblowers with the necessary safeguards to report violations without fear of reprisal, the bill aims to strengthen the integrity of the financial markets and protect investors from fraud and misconduct.
Congressional Summary of S 1149
SEC Whistleblower Reform Act of 2025
This bill expands and revises whistleblower protections applicable to individuals who provide information to the Securities and Exchange Commission (SEC) relating to a violation of securities laws.
Under current law, an employer is prohibited from retaliating against these whistleblowers. Under the bill, this prohibition is expanded to include (1) individuals who provide information regarding potential violations to supervisors or other employees in positions of authority; and (2) information relating to violations subject to the jurisdiction of the Public Company Accounting Oversight Board, the Municipal Securities Rulemaking Board, or a self-regulatory organization.
Additionally, the bill establishes the right to a jury trial for a person accused of violating whistleblower protection laws.
The bill also requires the SEC to make an initial disposition of a whistleblower award claim within the later of (1) one year of the deadline to submit such a claim, or (2) one year after the final resolution of any litigation in the matter.
Finally, the bill deems as unenforceable a predispute arbitration agreement regarding a whistleblower action.
