Whistleblowers play an important role in exposing poor practice in regulated firms, something the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have recognised with the publication of new rules on whistleblowing for firms operating in the financial services sector. These reforms, along with the new Senior Managers’ Regime, are part of their wider policy of reforms designed to improve individual accountability in the regulated sector. The rules are intended to build on and formalise the good practice already in place in many firms in the sector.
The new rules will come into full effect in September 2016 and will apply to:
- UK deposit-takers (i.e. banks, building societies and credit unions) with assets of £250million or more.
- PRA-designated investment firms.
- Insurance and reinsurance firms within the scope of Solvency II and to the Society of Lloyd’s and managing agents.