The number of whistleblower reports made to the FCA regarding activities by firms that cause consumer detriment rose by 15 per cent last year, according to research published in April 2021 by law firm RPC. In the year leading up to 31 December 2020, this figure rose to 185 from 161 in the previous year.
Consumer detriment has become an area of increasing focus for the FCA, particularly as the pandemic has led to more consumers finding themselves in a difficult financial position. In the FCA’s latest Financial Lives survey, published in February 2021, the regulator estimated that there are now 27.7 million vulnerable consumers in the UK.
As part of the FCA’s response to criticism that it has been too slow to act against scandals such as mini-bonds, it is expected to take whistleblowing reports far more seriously and more FCA investigations arising from whistleblower reports are anticipated. The FCA is expected to respond to the poor treatment of retail customers by issuing tougher fines and firms looking to provide services to vulnerable retail customers may also expect more stringent checks before they are authorised.
According to RPC, whistleblowers will now receive optional updates on the FCA’s investigations into the problems identified by them
See also our blog post on the FCA’s recently announce whistleblowing campaign, FCA announces new whistleblowing campaign.
If you’d like to know more about how we can help you with your whistleblowing arrangements, or any other regulatory compliance issues, our expert team is here to help.
Contact us today on 0207 436 0630 or email info@thistleinitiatives.co.uk.