To remain eligible for an award, most whistleblowers do not have to report internally before reporting to the SEC. (See eligibility requirements for details.) However, the SEC provides incentives for internal reporting. For example:
-
If a whistleblower reports internally, and then to the SEC within 120 days of the internal disclosure, then the SEC will use the date of the internal report in determining whether the whistleblower provided “original information.” This internal reporting essentially “holds your place in line.”
-
If a whistleblower’s internal disclosure prompts a company investigation, the whistleblower will benefit from all the information discovered in that investigation.
-
The SEC may increase the size of a whistleblower’s award if the whistleblower participated in the company’s internal compliance systems.
Notably, some whistleblowers must report internally before reporting to the SEC. (See eligibility requirements for details.)
Federal circuits are split regarding whether whistleblowers who report potential securities-law violations to their employers but not to the SEC are protected from retaliation under the program.
To learn more about the SEC Whistleblower Program, download the eBook SEC Whistleblower Program: Tips from SEC Whistleblower Attorneys to Maximize an SEC Whistleblower Award.
Chapter 1 - What is the SEC Whistleblower Program?
Chapter 2 - Can I Submit Anonymous Tip to SEC Whistleblower Office?
Chapter 3 - What Employment Protections are Available for SEC Whistleblowers?
Chapter 4- What Violations Qualify For A SEC Whistleblower Award?
Chapter 5- What are the largest SEC whistleblower awards?
Chapter 6- Who Is An Eligible SEC Whistleblower?
Chapter 7- Can I submit a tip to the SEC Whistleblower Office if I was involved in the fraud or misconduct?
Chapter 9- Compliance Personnel, Auditors, Officers and Directors Can Obtain SEC Whistleblower Awards
Chapter 10 - When is Best Time to Report Fraud or Misconduct to SEC?
© 2025 Zuckerman Law