In a recent order, the SEC sanctioned a private fund manager for taking adverse employment actions against a whistleblower who reported principal transaction compliance shortcomings to the SEC.  The interesting question raised by the order is what, if anything, the manager could have done with respect to the whistleblower’s employment without violating the anti-retaliation provisions of the Securities Exchange Act of 1934?  Phrased more generally, the order raises the question: What legal or operational options are available to a manager that fails to incentivize internal reporting of compliance violations?