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 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”.