Whistleblowing in the financial services sector

The Financial Services and Markets Act 2000 is likely to come into force on 30 November 2001.  As well as ensuring that businesses are compliant with the regulatory approval regime overall, financial companies are strongly recommended to put whistle-blowing procedures in place.

The FSA has made it clear that employees must have an opportunity to bring to light any failings of their employer, without the fear of sanctions.  Any detriments imposed on whistle-blowers can lead to Employment Tribunal claims and, under the FSMA 2000, criminal proceedings resulting in heavy fines.

Financial sector employers are advised to appoint a director or a senior member of the human resources department to deal with any complaints or allegations of bad practice which may arise.  We would also commend this to all employers as whistle-blowing is already protected by law.

This document is for general guidance and research purposes only, and does not purport to give professional advice. Please check the date at the top of the article; the Workplace Law Network retains historic articles for general research.