FCA and PRA Rules On Whistleblowing

November 06, 2015

The UK Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) published new whistleblowing rules in October 2015 (click here for FCA policy and here for PRA) aiming to ‘encourage a culture in which individuals raise concerns and challenge poor practice and behaviour’. The new rules are a result of the consultation carried out by the FCA and PRA in February 2015. The rules are designed to operate in conjunction with the Senior Managers Regime and the Senior Insurance Managers Regime which will come into force for PRA-regulated firms in March 2016. As Tracey McDermott, the Acting Chief Executive of the FCA put it, “[i]t is in the interests of the industry and regulators alike that wrongdoing is identified and addressed promptly ....[and] [f]or individuals to have the confidence to come forward, it is vital that firms have in place adequate policies on dealing with whistleblowers and that a senior manager takes responsibility for overseeing these policies.” The new rules are “designed to build on and formalise examples of good practice already found in parts of the financial services industry and aim to encourage a culture in which individuals working in the industry feel comfortable raising concerns and challenge poor practice and behaviour."

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