A recent article in the Financial Times reported a year-on-year increase in tip-offs to the Financial Conduct Authority – the highest level since 2015, with a 35% increase in reports relating to standards of professional behaviour alone. It appears that employees are increasingly ready to take their concerns straight to the authorities.

For that reason, there is a certain irony in the fact that the first enforcement case under the SM&CR ended the in FCA's refusal to ban Jes Staley, the CEO of Barclays who twice tried to identify an anonymous complainer at his firm. He had to pay a fine and claw-back penalty of more than £1.1 million but he was allowed to keep his job. The FCA subjected the bank to more scrutiny than before but took no other action against it, leaving it to the New York State Department of Financial Services to fine the bank, which it did to the tune of US$15 million.

SYSC 18 itself notes that acting “to the detriment of a whistle-blower...could call into question the fitness and propriety of the firm or relevant members of its staff.” Many in the industry believe that the FCA should have acted more strongly this case.

Here are some of the essential elements of a sound whistleblowing policy.

• Governance – make whistleblowing an agenda item for the governing body, including a review of arrangements and events in the compliance officer’s report.
• Education and training – explain the arrangements to new joiners and periodically remind everyone about the value of disclosure to the firm.
• How to report – make sure that employees know how, and to whom, to make internal and external reports.
• Independent advice – provide employees with details about Protect, a charity which supports individuals (and employers) in situations where tipping off may be appropriate.

* Martin Lovick can be reached on +44 20 7042 0500 or at martin.lovick@acacomplianceeurope.com; Ron Weekes can be reached on the same number or at Ron.Weekes@acacomplianceeurope.com