The FCA has published the outcome of a review into whistleblowing concerns.  The review was about allegations made by two individuals, both former FCA employees, that the chair of the FCA had not kept their identities confidential after they had raised whistleblowing concerns. In particular, he forwarded emails from these individuals to other colleagues.

In line with the corporate governance of the FCA, the board’s senior independent director, Richard Lloyd, carried out an internal review of the chair's handling of the two individuals’ whistleblowing communications.  Mr Lloyd obtained assurances that there were no other cases that should be brought within the scope of his review. 

The review has concluded that although the FCA’s chair did not follow its existing policy to the letter in handling two complex cases, he had sought to ensure the concerns raised, if appropriate, were acted on. The FCA’s chair, Ashley Alder, therefore consulted senior colleagues confident that they would treat the information with the utmost care. Mr Lloyd also concludes the chair reasonably took the view that he was providing information of which those colleagues were already aware.

Mr Lloyd has made recommendations to further strengthen the FCA’s internal whistleblowing policy. This will make clear and state expressly that in the rare instances of whistleblowing requiring escalation to non-executives such communications will be shared by them with appropriate internal or external expert advisers on a confidential ‘need to know’ basis. This is to enable appropriate and consistent investigation and action to be taken as necessary, whilst reassuring potential whistleblowers that they and their concerns will be treated with the utmost care and in a way that preserves the integrity of the FCA’s whistleblowing response.

The revised policy will clarify how and when it applies to former employees, signposting the different parts of the overall framework that individuals can use to raise any whistleblowing issues and making the appropriate points of contact clearer.

The FCA will make these changes as part of a review of the internal whistleblowing policy, which was already underway. The FCA will publish a revised policy shortly. In the meantime, the FCA has reminded board members and senior colleagues about its existing policy.

UPDATED: On 8 October, the Financial Times reported that one of the whistleblowers had told the FT that there were errors in the FCA's report and they'd asked the FCA to correct it, apologise for the alleged errors and pay compensation for distress caused.  According to the FT, the FCA sent the whistleblower a copy of the report just an hour before it was published.  This provides some context for the the FCA's plans to “name and shame” and their original plans to give firms 24 hours to make representations before being named as under investigation…

The whistleblowing issue is not going away.