FCA launches new rules to encourage whistleblowing

The Financial Conduct Authority has launched new rules to encourage more whistleblowing at UK firms.

Lenders and insurers will need to put measures in place to allow employees to raise concerns internally. A senior person will take responsibility for the arrangements.

“These 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,” said Tracy McDermott, acting FCA chief executive.

Under the new rules, companies will be required to tell employees about their rights to blow the whistle and issue written agreements explaining those rights.

Firms will also need to inform watchdogs when they lose an employment claim involving a whistleblower.

The move follows a batch of banking scandals in the City including the manipulation of the Libor rate and the mis-selling of payment protection insurance.

In 2013, the Parliamentary Commission on Banking Standards recommended that banks put in place mechanisms encourage employees to blow the whistle.