New whistleblower protections could expose firms to baseless allegations

Follows new FCA guidance

Few would dispute that a whistleblower who raises a concern in good faith should be protected from dismissal or other retaliatory action.

However, in a laudable attempt to protect whistleblowers, the current regulatory system has also unwittingly opened firms up to abuse by unscrupulous employees. In its latest guidance on the minimum standards and best practice around whistleblowing, the Financial Conduct Authority (FCA) has stressed the requirement for financial services firms to ensure concerns raised by all whistleblowers are handled appropriately and confidentially. Firms should be aware that it is their duty to implement arrangements designed to protect whistleblowers from victimisation, and to oversee the prepara...