The FCA and PRA have published new rules (Policy Statement 15/24) on whistleblowing. The rules aim to encourage a culture in which individuals can raise concerns and challenge poor practice and behaviour. The new rules affect UK deposit-takers with assets of £250m or greater (including banks, building societies and credit unions), PRA-designated investment firms and insurance and reinsurance firms within the scope of Solvency ll and to the Society of Lloyd’s and managing agents. For all other regulated firms, the text will act as non-binding guidance.
The new rules take full effect in September 2016 and require a firm to:
- Appoint a Senior Manager as their whistleblowers’ champion.
- Put in place internal whistleblowing arrangements able to handle all types of disclosure from all types of person.
- Put text in settlement agreements explaining that workers have a legal right to “blow the whistle”.
- Tell UK-based employees about the FCA and PRA whistleblowing services.
- Present a report on whistleblowing to the board at least annually.
- Inform the FCA if it loses an employment tribunal with a whistleblower.
- Require its appointed representatives and tied agents to tell their UK-based employees about the FCA whistleblowing service.