Many FCA and PRA regulated firms were due to ensure that they
complied with new whistleblowing rules by 7 September 2016.
Firms affected are:
Deposit-takers with over Ł250
million in assets (including banks and building societies);
PRA-designated investment firms;
Insurers subject to the Solvency II
Directive (2009/138/EC); and
Society of Lloyd's and managing
Other FCA regulated firms should take note, because from 2018,
these whistleblowing rules will be applied to all FSMA firms.
The firms affected now, will have already allocated
responsibility for whistleblowing compliance to a
whistleblowers' champion (usually a non-executive director).
The whistleblowers' champion oversees the implementation of
systems and processes aimed at compliance with the new rules,
ensuring that everything is now in place. The whistleblowers'
champion will oversee the preparation of an annual report to the
board (available to the FCA/PRA on request) about the functioning
of internal whistleblowing policies and procedures.
To comply with the new whistleblowing rules, affected firms must
set up an independent whistleblowing channel, rather like a
corporate whistleblowing hotline, via which whistleblowers (workers
and others) can make anonymous and confidential disclosures. All
types of disclosures can be reported via the whistleblowing
channel, so not all of the disclosures will result in legal
protection for the whistleblower; and not all of the issues raised
through the channel will need to be treated as instances of
Staff should also be notified of the PRA and FCA's own
whistleblowing services, which are separate to the firm's own
It is important that these additional whistleblowing obligations
are followed as the regulators (PRA / FCA) will make an express
link between how a firm handles whistleblowers and the fitness and
propriety of the firm and any relevant employees.
What can we do?
route map can help you to plan the steps you should take to
comply with the new rules but Clyde & Co's employment team
Review and amend your whistleblowing
Train both the whistleblowers'
champion and your other staff members to ensure that they
understand their responsibilities and obligations.
In SSE Generation Limited v Hochtief Solutions AG and another decided on 21st December 2016, the Court of Session in Scotland considered a contractor's potential design liability under the NEC Form of Contract.
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