We use cookies to improve our site and your experience.

By continuing to browse on this website you accept the use of cookies.

Privacy Notice

Financial Services – New Whistleblowing Rules

Financial Services – New Whistleblowing Rules

Readers in the financial services sector will have seen the FCA’s announcement earlier this month that it will require larger lenders and insurance businesses to implement formal whistleblowing arrangements.

The rules, which take effect from September 2016, include the following key requirements:

  • The firm must appoint a “whistleblowers’ champion” (who must be a “Senior Manager”, in the sense of the new Senior Manager’s Regime)
  • internal whistleblowing arrangements must be established by the firm, covering any disclosure from any person
  • Any settlement agreements for employees will need to explain in writing that workers have a right to blow the whistle
  • The firm must advise its UK staff about the whistleblowing service operated by the regulator ( (and must require any appointed representatives/tied agents to tell their UK staff about the service as well)
  • A whistleblowing report must be submitted to the board annually
  • The firm must inform the FCA if it loses a whistleblowing case before the employment tribunal

The FCA’s announcement was met with criticism from the Chartered Institute for Securities & Investments (see here), which labelled them “only half finished”. In particular, CISI queried why the rules should apply to larger institutions only. However, be careful what you wish for! On its website, the FCA has also said that “Once the rules … have been in effect long enough to assess their effectiveness, we will consider whether similar requirements should be applied more widely to other firms we regulate, such as stockbrokers, mortgage brokers, insurance brokers, investment firms and consumer credit firms”.