UK unveils rules on whistleblowers and references

Britain’s financial watchdogs yesterday unveiled rules to help whistleblowers in the banking and insurance sectors. They also made proposals to tighten up how banks and insurers obtain references on potential hires.

The 2007-2009 financial crisis prompted policy makers in Britain to call for a system that makes it easier for staff to raise concerns internally.

The regulators also want to make it harder for bankers involved in misconduct to find a job with another bank.

The final rules on whistleblowing form part of broader efforts by the Financial Conduct Authority (FCA) and the Bank of England’s Prudential Regulation Authority to improving individual accountability in the financial sector.

Many lenders already have informal whistle blowing arrangements but the regulators wanted a formal, standardised approach.

“For individuals to have the confidence to come forward, it is vital that firms have in place adequate policies on dealing with whistleblowers and that a senior manager takes responsibility for overseeing these policies,” said Tracey McDermott, acting FCA CEO.

On the issue of references, the regulators published a consultation paper on introducing a mandatory template in March 2016 for banks and insurers to obtain references on people they want to hire.