The FCA and PRA have announced a new package of rules aimed at formalising whistleblowing procedures within certain financial institutions. The rules will be implemented on 7 September 2016; however firms covered by the new regime must comply with the requirement to appoint a ‘whistleblowers’ champion’ by the earlier date of 7 March 2016.
Following the LIBOR scandal in 2013, whistleblowing has fast risen up the regulatory agenda. In June 2013, the Parliamentary Commission on Banking Standards recommended that banks should put in place mechanisms to allow workers to raise concerns internally and appoint a senior person to take responsibility for the effectiveness of these arrangements. Earlier this year, the PRA and FCA consulted with firms on whether such measures should be introduced. The new rules, which are contained in a package of publications from the PRA and FCA, are intended to be applied alongside the Senior Managers Regime (SMR) and the Senior Insurance Managers Regime (SIMR).
The FCA recognises that many of the firms covered by the new rules already have rigorous internal whistleblowing procedures in place. The new regime aims to build on and formalise those good practices and encourage individuals to raise concerns and challenge poor behaviours in the industry.
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