The Importance of a Trustworthy Whistleblowing Policy
A whistleblowing review at the Financial Conduct Authority revealed criticisms of the Whistleblowing Policy, contributing to further censure about the company’s treatment of whistleblowers.
The FCA has been under scrutiny since a former employee’s public allegation in August 2024 that Ashley Alder, the chair of the FCA, breached confidentiality in handling a whistleblowing communication. The whistleblower told the Financial Times they were “stunned” about the breach and accused the FCA of “incompetence and incapability”.
After the first allegation, a second former employee came forward with a similar complaint, attracting further media interest. Richard Lloyd, the senior independent director of the FCA’s board, recently concluded an internal review of these two whistleblowing cases. He found that Alder “did not follow our existing policy” in these cases, identified shortcomings, and provided recommendations to strengthen the policy. A company announcement followed which confirmed the policy will be updated.
During the FCA’s annual public meeting, Alder appeared critical of the existing policy, sharing his view that “if a policy sets expectations, even though that policy is impractical, we would obviously regret that those expectations were not met”.
Georgina Halford-Hall, Chief Executive of WhistleblowersUK, expressed disapproval, saying the case ‘demonstrates that the FCA hasn’t got its own house in order and therefore it casts serious doubt over whether it’s able to lead and deliver its duties’.
The negative media coverage is a reminder that the quality of a company’s Whistleblowing Policy is critical. A robust policy can encourage open communication, ensure compliance, and safeguard a company’s future. A weak policy undermines trust and can lead to more harm than good.
Conclusion
Integrity, trust, and ethical behaviour are crucial in today’s business environment. A successful Whistleblowing Policy helps to protect employees and their employers. However, relying on inadequate policies can result in serious consequences, including major reputational damage.
Bright Contracts clients have access to over one hundred carefully reviewed employment policies and additional resources, including a clear and comprehensive Whistleblowing Policy.
