Getting fit and proper for new financial services whistleblowing regime
Certain financial services firms must comply with new Bank of England’s Prudential Regulation Authority (PRA) rules designed to encourage staff to “blow the whistle”.
Certain financial services firms must comply with new Bank of England’s Prudential Regulation Authority (PRA) rules designed to encourage staff to “blow the whistle”.
Deposit-takers with assets greater than £250 million, PRA-designated investment firms and insurers (relevant firms) must have effective whistleblowing arrangements for staff to raise concerns either internally or to regulators about wrongdoing and to minimise retaliation against whistleblowers.
By 7 March 2016, relevant firms must nominate a “whistleblowing champion” who is both a Senior Manager, under the Senior Managers’ Regime, and a non-executive director to oversee the implementation of whistleblowing policies and procedures. The whistleblowing champion must also ensure that whistleblowers are protected from detrimental treatment and that an annual whistleblowing report is made to the board. The champion may delegate the day-to-day operation of the whistleblowing procedures.
By 7 September 2016, compliant whistleblowing policies and procedures must be in place.
A firm’s fitness and propriety will be called into question by the FCA where there is evidence of retaliation by a firm against a whistleblower. Early preparation is recommended.
To get ready for the new regime, relevant firms should:
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