FCA introduces new whistleblowing rules for employees at financial firms in UK

The FCA said its new rules created to “build on and formalise the good practice already widespread in the financial services industry”.

“It is in the interests of the industry and regulators alike that wrongdoing is identified and addressed promptly”, said FCA boss Tracey McDermott.

Firms will have to appoint a senior manager as their whistleblowers’ champion, and put in place internal whistleblowing arrangements able to handle all types of disclosure from all types of person. The new Senior Managers and Certification regimes will also encourage more individual whistleblowing in the financial services sector, as individuals seek to ensure that they have taken all due steps to report and escalate concerns in order to protect their own position.

Among the new rules are the requirement for institutions to inform the FCA if they lose an employment tribunal involving a whistleblower, and the need for company boards to attend a yearly presentation on whistleblowing.

Over the past years, the FCA has taken a number of steps to encourage whistleblowers to come forward to the organisation, including conducting a detailed review of its whistleblowing procedures and beefing up the resources dedicated to the area.

Financial Conduct Authority and Prudential Regulation Authority published the rules Tuesday, which require banks, building societies and a few insurers to develop frameworks to better support whistle-blowing.

In 2014/15 the FCA received 1,340 whistleblowing disclosures, compared to 1,040 in the previous year and just 138 in 2007/8. The FCA clarifies that the guidance is non-binding for all other firms under FCA supervision. No rules regarding the payment of informants – as exist in the USA – have been introduced.

Employers must tell United Kingdom based employees about the whistleblowing services provided by the FCA and PRA.