They will include concerns about breaches of regulatory rules, failures to comply with the firm’s policies or procedures, or any behaviour that harms or is likely to harm the firm’s reputation or financial wellbeing. This is actually a wider definition of “whistleblowing” than under the Public Interest Disclosure Act.
Accordingly, the matters falling under a whistleblowers’ champion’s remit could range from a complaint from a senior colleague that a major pension fund lacks liquidity to meet its long-term liabilities, to a summer intern complaining that their lunch expenses have not been paid.
While this wide approach to allow disclosure on all types of topic sounds alarming, the FCA have been keen to emphasise that everyday differences of opinion or customer complaints do not need to be escalated through the whistleblowing arrangements – your firm will already have well-established procedures to deal with these.
I’ve been appointed as a whistleblowers’ champion – what should I expect?
You will be relieved to know that it is not your job to judge whether a particular whistleblowing disclosure is genuine or not. Your responsibility is to ensure and oversee the “integrity, independence and effectiveness” of your firm’s procedures for whistleblowing.
You will be the figurehead that whistleblowers look to for protection – as it is your job to ensure that there are procedures in place to ensure individual complainants are protected from detrimental treatment.
No-one will expect you to change your job description to describe yourself as the “whistleblowers’ champion”, but make no mistake, this is a heavy responsibility.
The FCA recognises this, saying that it will only be heavy-hitters like non-executive directors who can become the whistleblowers’ champion, and only senior managers need apply.
What practical steps can I take to ensure compliance?
If you work in a large firm, you won’t be required to be open to direct approaches from would-be whistleblowers – but think carefully about turning anyone away who approaches you with a concern.
Of course, you will delegate much of your day-to-day whistleblowers’ champion functions to trusted colleagues. But retain oversight over those who you delegate to – whether that is through regular catch-up meetings with them or formalising the arrangements by establishing a direct reporting line over them.
If you work in a smaller firm, you’ll be expected to take a more “hands-on” role – not only receiving disclosures personally, but tracking their progress and reporting back to whistleblowers where appropriate.
You should regularly check on internal processes to make sure that all colleagues’ disclosures are being handled properly. Work closely with business units to implement the new regime. Make sure colleagues are aware of the FCA’s own intelligence department (aka the FCA whistleblowing hotline) - whistle@fca.org.uk.
