City regulator’s whistleblowing policy will “protect pensions and savings”
4th July 2001
The financial regulator’s new “pro-whistleblower” policy will help to expose fraud and protect the public’s pensions and savings, according to the whistleblowing charity Public Concern at Work.
Yesterday (July 3) the Financial Services Authority published new proposals to support staff who blow the whistle on malpractice in City institutions. The FSA is calling on financial bodies to set up their own procedures to investigate concerns raised by their employees. It will be introducing it own secure hotline and e-mail address for whistleblowers. If firms penalise whistleblowers, the FSA says it will treat this as a ‘serious matter’. It will also investigate the adequacy of firms’ own whistleblowing arrangements after disclosures made directly to the FSA have been investigated.
Public Concern’s chairman, Michael Brindle QC, welcomed the new approach as “an extremely positive development that will help to expose malpractice and protect the savings of ordinary members of the public”. He added: “The recent Public Interest Disclosure Act already protects whistleblowers who raise concerns with their employer or regulators or - where this is necessary - by going public. The FSA’s positive approach builds on this by recognising that whistleblowers have an essential role to play in deterring fraud, and that steps which protect them also protect the public. If firms respond positively to this initiative they will reap the benefits not only of improved accountability but also of increased public confidence in the financial services industry.”
Notes to editors:
The FSA’s proposals set out in consultation paper 101 Whistleblowing, the FSA & the financial service industry is available from the FSA website www.fsa.gov.uk under Publications.
The Public Interest Disclosure Act (PIDA) came into force on the 2 July 1999. It protects workers who raise genuine concerns of malpractice from being victimised or dismissed by their employers. PIDA is part of employment law and claims are made to the employment tribunal.
Public Concern at Work is an accountability watchdog and legal advice centre.
It has led recent developments on responsible whistleblowing and promoted the Public Interest Disclosure Act. It receives no state aid. [Please include its] helpline number 020 7404 6609.