Following recommendations made back in 2013 by the Parliamentary Commission on Banking Standards (PCBS) that banks introduce enhanced internal procedures that allow their staff to raise concerns, both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) are implementing new whistleblowing procedures, which come into force with effect from the 7th September 2016.
The new rules will apply to apply to banks, building societies, and credit unions with assets in excess of £250m, and to insurance companies who are subject to the Solvency II directive.
The rules are designed to create a climate within which employees feel more confidant about reporting poor practice, misconduct, etc
The new rules require firms to:-
- Ensure that a Senior Manager is specially appointed to oversee whistleblowing policy, promote a climate within which employees feel able to disclose, and support those who blow the whistle.
- put in place internal procedures for handling disclosures
- Insert a clause into all future settlement agreements making it clear that the employee remains entitled to whistleblow
- Make employees aware of whistleblowing services provided by the FCA and PRA
- Ensure that there is an annual report on whistleblowing to the board
- Make the FCA and PRA aware of any cases lost at Tribunal relating to whistleblowing
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