Overview

• A survey conducted by the United Kingdom Financial Conduct Authority (FCA) in early 2022, but published only in 2023,¹ has revealed the stark reality that the regulator is not doing enough for whistleblowers.
• 15 of 21 respondents reported that they were “extremely or somewhat dissatisfied” with the FCA’s handling of their report, and almost 40% stated that they would be “unlikely” to, or “definitely would not”, make a whistleblowing report to the FCA again.
• The FCA has responded by renewing its focus on improvement, having set out a number of proposed steps to enhance the whistleblowing framework.
• The FCA’s identified shortcomings contrast with the recent successes of the United States Securities and Exchange Commission (SEC) in receiving tip-offs, acting on them, and protecting and rewarding whistleblowers. One key difference in the regimes is the SEC’s ability to offer financial incentives to whistleblowers.
• The increased scrutiny of the FCA’s activities surrounding whistleblowing will almost certainly translate into greater focus on the practices of regulated firms. This should encourage firms to revisit their policies and procedures to ensure compliance with the FCA’s rules.

Why Does Whistleblowing Matter?

In her first public speech following her appointment as the FCA’s Joint Director of Enforcement, Therese Chambers, exhorted firms to “do the right thing”.² Whilst an attractive phrase for the regulator, despite the best will and culture in the world,...

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