Whistleblowers have criticised the Financial Conduct Authority (FCA) for how it handles the whistleblowing process feeling their concerns were “brushed aside”, there was a “failure to investigate properly and take appropriate actions” and there appeared to be “no real consequences” for perpetrators.
A significant minority were so unhappy they would not be willing to make a further whistleblowing report to the regulator in future.
The findings came from an FCA qualitative survey of whistleblowers where the vast majority of respondents said they were unhappy with the regulator’s process and final outcomes.
The regulator conducted a small sample survey of recent whistleblowers who disclosed their concerns about wrongdoing in the industry to understand and capture a range of views about the experience of reporting to the FCA.
In early 2022 a sample of 68 whistleblowers who had engaged with different whistleblowing team members were chosen to take part in the survey, with the regulator receiving 21 fully completed survey responses, with a further three partial responses.
The regulator said it felt these respondents supplied sufficiently varied accounts of their experience to meet the aims of this research.
Of the nine individuals who had received final feedback on their cases, eight were dissatisfied with the outcome. A dozen had not yet received final feedback.
Respondents reported they were not reassured their concerns had been properly investigated and had expected a final report detailing the action taken.
Some respondents said they did not understand how the FCA had used their information.
They said they felt their concerns had been “brushed aside”, there was “no explanation, no opportunity to discuss” and they felt there was a “failure to investigate properly and take appropriate actions”.
Further there were “no real consequences” for wrongdoers.
When asked whether they would be willing to make a futher whistleblowing report to the FCA is future, while nine of the 21 said they definitely would, six said they definitely would not.
‘Disappointed at dissatisfaction’
For its part, the FCA said it was disappointed to see the dissatisfaction expressed by many survey respondents, adding whistleblowers were key stakeholders in its efforts to reduce harm and it greatly valued their contribution.
It also pointed out that the survey findings, while from a limited sample, gave the regulator a valuable opportunity to continue to develop its approach to whistleblowing.
The regulator added it will continue to:
- assess every disclosure made by a whistleblower on its merits
- ensure that whistleblowers’ disclosures are exploited fully and actions are taken and closed with whistleblower protection at the forefront (acknowledging that it can take some time to achieve this, particularly when disclosures are part of a wider or complex matter)
- improve the feedback provided to whistleblowers when giving them final feedback – including steps taken or reasons for taking or not taking action, as well as information about the outcome.
- ensure that the survey results were used to inform its contribution to a wider review of whistleblower legislation that the Department of Business and Trade will undertake in the coming months.