The House Financial Services Committee passed legislation on Thursday to protect whistleblowers from employer retaliation as well as create a “clear definition” of what constitutes insider trading under securities laws.
The Whistleblower Protection Reform Act, H.R. 2515, which unanimously passed, amends the definition of whistleblower under the Securities and Exchange Act of 1934 to clarify that whistleblowers who report alleged misconduct internally to their employers—but not to the Securities and Exchange Commission—are protected by Dodd-Frank’s anti-retaliation provisions.
H.R. 2534, the Insider Trading Prohibition Act, meanwhile, creates “a codified, consistent standard” of what constitutes insider trading.