(1) in the paragraph heading, by striking ‘‘CON-
FIDENTIALITY’’ and inserting ‘‘NOTIFICATION
TO 
EMPLOYER AND CONFIDENTIALITY’’; 
(2) by redesignating subparagraph (A) through 
(D) as subparagraphs (B) through (E), respectively; 
(3) by inserting a new subparagraph (A) as fol-
lows: 
‘‘(A) NOTIFICATION OF INVESTIGATION.— 
‘‘(i) NOTIFICATION REQUIRED.—Prior 
to commencing any enforcement action re-
lating in whole or in part to any informa-
tion reported to it by a whistleblower, the 
Commission shall notify any entity that is 
to be subject to such action of information 
received by the Commission from a whistle-
blower who is an employee of such entity 
to enable the entity to investigate the al-
leged misconduct and take remedial action, 
unless the Commission determines in the 
course of a preliminary investigation of the 
alleged misconduct, not exceeding 30 days, 
that such notification would jeopardize 
necessary investigative measures and im-
pede the gathering of relevant facts, based 
on— 
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‘‘(I) evidence that the alleged 
misconduct was committed by or in-
volved the complicity of the highest 
level management of the entity; or 
‘‘(II) other evidence of bad faith 
on the part of the entity. 
‘‘(ii) GOOD FAITH.—Where an entity 
notified under clause (i) responds in good 
faith, which may include conducting an in-
vestigation, reporting results of such an in-
vestigation to the Commission, and taking 
appropriate corrective action, the Commis-
sion shall treat the entity as having self-re-
ported the information and its actions in 
response to such notification shall be eval-
uated in accordance with the Commission’s 
policy statement entitled ‘Report of Inves-
tigation Pursuant to Section 21(a) of the 
Securities Exchange Act of 1934 and 
Statement of the Relationship of Coopera-
tion to Agency Enforcement Decisions’.’’; 
and 
(4) in the heading of subparagraph (B) (as re-
designated by paragraph (3)), by striking ‘‘IN GEN-
ERAL’’ and inserting ‘‘CONFIDENTIALITY’’. 
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SEC. 3. AMENDMENTS TO THE COMMODITY EXCHANGE 
ACT. 
(a) EXCLUSION OF CERTAIN COMPLIANCE OFFICERS 
AND
INTERNAL
REPORTING
AS
A
CONDITION
OF 
AWARD.—Section 23 of the Commodity Exchange Act (7 
U.S.C. 26) is amended— 
(1) in subsection (b), by redesignating para-
graph (2) as paragraph (3) and inserting after para-
graph (1) the following: 
‘‘(2) INTERNAL REPORTING REQUIRED.—In the 
case of a whistleblower who is an employee providing 
information relating to misconduct giving rise to the 
violation of the securities laws that was committed 
by his or her employer or another employee of the 
employer, to be eligible for an award under this sec-
tion, the whistleblower, or any person obtaining re-
portable information from the whistleblower, shall— 
‘‘(A) first reported the information de-
scribed in paragraph (1) to his or her employer 
before reporting such information to the Com-
mission; and 
‘‘(B) report such information to the Com-
mission not later than 180 days after reporting 
the information to the employer.’’; and 
(2) in subsection (c)(2)— 
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(A) in subparagraph (C), by striking ‘‘or’’ 
at the end; and 
(B) by redesignating subparagraph (D) as 
subparagraph (F) and inserting after subpara-
graph (C) the following: 
‘‘(D) to any whistleblower who fails to first 
report the information described in subsection 
(b)(1) that is the basis for the award to his or 
her employer before reporting such information 
to the Commission, in the case where the mis-
conduct giving rise to the violation of the secu-
rities laws was committed by such employer or 
an employee of the employer, unless the whistle-
blower alleges and the Commission determines 
that the employer lacks either a policy prohib-
iting retaliation for reporting potential mis-
conduct or an internal reporting system allow-
ing for anonymous reporting, or the Commis-
sion determines in a preliminary investigation 
not exceeding 30 days that internal reporting 
was not a viable option for the whistleblower 
based on— 
‘‘(i) evidence that the alleged mis-
conduct was committed by or involved the 
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complicity of the highest level of manage-
ment; or 
‘‘(ii) other evidence of bad faith on 
the part of the employer; 
‘‘(E) to any whistleblower who has legal, 
compliance, or similar responsibilities for or on 
behalf of an entity and has a fiduciary or con-
tractual obligation to investigate or respond to 
internal reports of misconduct or violations or 
to cause such entity to investigate or respond to 
the misconduct or violations, if the information 
learned by the whistleblower on the course of 
his or her duties was communicated to such a 
person with the reasonable expectation that 
such person would take appropriate steps to so 
respond; and’’. 
(b) CAP ON AWARD IN CERTAIN CIRCUMSTANCES 
AND
ELIMINATION
OF
MINIMUM
AWARD
REQUIRE-
MENT.—Subsection (b)(1) of such section is amended— 
(1) by striking ‘‘shall’’ and inserting ‘‘may’’; 
and 
(2) by striking ‘‘in an aggregate amount equal 
to—’’ and all that follows and inserting ‘‘in an 
amount determined by the Commission but not more 
than 30 percent, in total, of what has been collected 
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