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FCA is considering paying whistleblowers

Martin Wheatley
Martin Wheatley: Grilled by the banking commission

FCA chief executive designate Martin Wheatley has opened the door to paying large US-style cash incentives to financial whistleblowers.

Speaking to the Parliamentary Commission on Banking Standards last week, Wheatley said he is studying the US system closely and could make changes in the UK.

Under US financial regulatory reforms, financial whistleblowers will be incentivised to come clean by keeping between 20 and 30 per cent of the proceeds of any crime that is successfully prosecuted.

Wheatley said: “We are absolutely interested in it. We have spoken to the US authorities and are looking very carefully at it but it is too early to make a judgement yet.

“The key difference to us is the incentive structure. Under our system it is a moral incentive to do the right thing whereas the US system operates a financial incentive and there are some pros and cons to both.”

The FSA receives up to 4,000 whistleblowing reports every year, with 12 per cent pursued as “actionable intelligence”.

FSA chairman Lord Turner told the PCBS the Libor rigging scandal has highlighted the crucial role whistleblowers play in exposing corruption.

He said: “I do not think we could ever have known about Libor without a supervisor in every trading room. How big would a police force need to be to spot every crime that occurs?

“One of the few mechanisms available is whistle blowing so we need to think more deeply about it than in the past.”

Your Mortgage Decisions director Dominik Lipnicki says: “People are greedy so financial reward will act as an incentive.”

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  1. Melanie Prendiville 18th June 2013 at 2:11 pm

    Martin Wheatley can start by Improving the quality and Standards of the Financial Ombudsman Service. It is a disaster. If you complain about Legal & General you will not get anywhere as I found out – because John Pollock head of Risks L&G is on the FSA Practitioner Panel. If that is not “Conflict of Interest” tell me what it is!!
    Legal & General are awful the way they Fob of long and good clients like me who also worked for them and gave them good reliable clients from which they have earned millions. Lies and Negligence is only one sided – they refer to their errors and Negligence as “it was a genuine mistake” and follow up with 4 more genuine mistakes – I hope they go down before I die.

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