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FCA whistleblowing cases drop 20%

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The number of whistleblowing cases dropped by almost 20 per cent last year, according to data from the FCA obtained by law firm Pinsent Masons.

The law firm says FCA data shows 1,104 whistleblowing cases were recorded last year, down from 1,367 in 2014 but up on the 948 cases reported in 2013.

Michael Ruck, a financial services lawyer at Pinsent Masons, brands the figures “disappointing”.

He says: “It is disappointing in the sense that the FCA has worked hard to review and improve its whistleblowing procedures and increasing the resources dedicated to the area.

“There has long been debate around the introduction of financial incentives for whistleblowers, and the numbers may reignite and give renewed impetus to that discussion.

Last year the FCA and the PRA introduced new rules on whistleblowing, designed to encourage more employees to come forward. Among the changes are the requirement for each firm to appoint a senior manager as a whistleblowers’ champion and put in place internal systems to handle whistleblowing.

Ruck says: “It will be interesting to see whether the regulator’s increased focus on personal accountability under the [Senior Managers Regime] will lead to a rise in whistleblowing.”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. I find this no surprise whatsoever with the lack of action seemingly taken on whistleblowing. I have reported three times to the FCA under this scheme over the last 2 years an received no follow up at all beyond an initial acknowledgement. At least one of the firms I have reported is still trading and still flogging its dodgy investments which will no doubt be the subject of claims in a couple of years and the subsequent increases to our levies.

  2. Christine Brightwell 7th March 2016 at 1:51 pm

    I complained about a bank a few years ago to the FSA as it then was. Complete waste of a phone call. So, nothing has changed

  3. Neil Liversidge 7th March 2016 at 1:53 pm

    Absolutely right Darren. I reported a would-be Bernie Madoff and a year later he was still in business. The regulator only got its finger out when the press got involved. Another is still practicing despite admitting massive data theft, wilful mis-selling and impersonating a client. Box ticking is far more important obviously.

  4. As I understand it, the FCA do not action many whistle blowing reports and therefore nobody trusts them to the extent that they are willing to go through the hassle involved. Maybe the FCA should follow up EVERY whistle blowing report and then they may retrieve the situation.

  5. Lindsay Lockett 7th March 2016 at 8:59 pm

    We I guess we can all expect the relevant department in the FCA who deals with whistleblowing will be cutting its budget, so not all bad then. It won’t be long either before they spin this into the drop in whistleblowing is linked to their effective regulation of markets that drives better consumer outcomes.

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