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FCA sets out whistleblowing rules

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The FCA and the Prudential Regulation Authority have published new rules to encourage staff to raise concerns over poor practice.

Banks, building societies, PRA-regulated investment firms and insurers will fall within the scope of the whistleblowing rules, which will take effect from 7 September 2016.

Firms will be required to appoint a senior manager as whistleblowers’ ‘champion’; produce an annual report to the board; inform the FCA if it loses an employment tribunal with a whistleblower; and alert employees to the regulators’ work in this area.

The FCA says it will consider expanding the rules to other regulated businesses, including mortgage brokers and investment firms, once today’s rules have been implemented.

FCA acting chief executive Tracey McDermott says: “Whistleblowers play an important role in exposing poor practice in firms and they have in the past few years contributed intelligence crucial to action taken against firms and individuals.”

She adds: “For individuals to have the confidence to come forward, it is vital that firms have in place adequate policies on dealing with whistleblowers and that a senior manager takes responsibility for overseeing these policies.”

The regulators introduced the rules following the Parliamentary Commission on Banking Standards’ 2013 recommendation.

In 2014/15 the FCA received 1,340 whistleblowing disclosures, compared to 1,040 in the previous year and just 138 in 2007/8.



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There are 10 comments at the moment, we would love to hear your opinion too.

  1. “We haven’t a clue what’s going on so we want employees to risk their livelihoods doing it for us”

  2. Maybe the staff at these firms should be encouraged to whistleblow poor practice at the FCA.

  3. Excellent news. Another new title and register to maintained for the powers that be. You should see my business card already. I may need to move onto A5 stock soon to fit all my roles in. Oh if only I was the multi-national business they think I belong to. I’m not that sure that the FCA fully understand how we all work really. I expect Whistleblowing Champion will probably be shortened to something like CF137 or something catchy like that. Hay ho.

  4. For this to be taken seriously (as opposed to being greeted with contempt), the FCA needs to draw up and publish an action charter on whistleblowing reports it receives. Otherwise, this is just another example of empty grandstanding.

    The pages of journals such as these are littered with examples of financial advisers having dutifully reported dodgy practice to the FSA/FCA and then heard………….. nothing, not even a thank you, we’ll get right on it and keep you informed of progress. So what will the FCA do and when, if we take the trouble to bring to its attention dodgy practices? Just chuck ’em on a pile somewhere, to be looked at if, as and when somebody gets round to it? Not good enough. We want a positive mission statement.

    Perhaps the FCA could publish half a dozen detailed and specific examples of reports it’s received in the past, the timescales within which it took action, exactly what that action was, the outcomes and what thanks were conveyed to the person who submitted the report. Did they, for example, receive any sort of reward? Because, frankly, if we don’t really know if the FCA is likely to do any better than it has in the past (it’s not promising to, is it?) and if we don’t get something in return for a successful outcome (if only a personal letter of thanks), I can’t see that many of us are likely to feel like bothering. Can you?

    • After reporting a crime or potential crime to the police, would you expect them to keep in touch and give you updates on how the information you provided led to a conviction or wider work? The truth is they dont have the time to wastse on such pointless endevours as ‘keeping you up to date’ or making you feel important.

      If you really wanted what you suggest – bearing in mind the numbers reported on this article – I assume you would be happy to see an increase in costs to cover it?

      If you dont report something because you wont hear back on what happened then you’re an insecure idiot. Let them do what they want but make sure you report anything that is detrimental to our industry.

  5. Hot air & pith in another report to myself then based on a Strasi, Maoist & Stalinist idea.

  6. So we can have “rules” when it suits…

  7. How bizarre. The FCA laying down further regulatory guidance on whistle blowing, I don’t know whether to laugh or cry.

    When the Chief Exec of a bridging finance company discovers a £30,000,000 black hole in the accounts of his new employer and whistle blows to the FSA they choose to ignore it. Thereafter unfolded a £120,000,0000 fraud and the FCA to this day are trying to mud sling and avoiding scrutiny for their catastrophic regulatory failings.

    The FCA have lied to MP’s lied to investors and desperately try to cover their tracks.

    Corrupt, inept, dishonest and totally unfit for purpose that’s your regulator Ladies and Gentleman.

  8. I would consider this a good concept/idea – for those who have voiced contempt; would you not report to the police if you saw someone sneaking over a neighbours fence in the middle of the night? by your answers I assume that many would simply say ‘nothing to do with me!’

    The FCA cannot have eyes everywhere – whilst yes they are inept at times, there any many things they are doing right and trying to expose the corrupt and poor advisers (unless everyone thinks we are all angels!?!) is surely a good thing?

    My worry is in such an insular industry how could anyone risk their livelihood – I’ve have seen some appalling low morals from some advisers who just want to line their own pockets, however if I turned whistleblower do you think a future reference would be a good one????

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