New UK rules on the treatment of ‘whistle-blowers’ came into effect two days ago,on the seventh of September. For now they are only applicable to UK deposit-takers with assets of £250m or greater. They cover banks; building societies and credit unions; PRA (Prudential Regulatory Authourity) designated investment firms; Solvency II insurance and re-insurance businesses; the Society of Lloyd’s;and managing agents.
For all other firms regulated by the Financial Conduct Authority (FCA) the rules are of ‘non-binding guidance’ only.
Unlike the situation in the the US Securities Exchange Commission who can remunerate ‘whistle-blowers’, UK rules make no such provision.However the PRA provides for an employment tribunal to award unlimited compensation for those victimised for disclosing wrongdoing. These decisions will now have to be reported directly to the PRA.
In addition to the existing requirements that relevant entities assign responsibilities to a whistle-blowers’ champion to oversee the preparatory steps for the new regime, the new rules…
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