FSMA violations are among the top whistleblowers’ allegations #
The Financial Conduct Authority that keeps an eye on every whistleblowing case that falls within their remit, reports the growing number of whistleblowing in July-September 2022. During the third quarter of last year, FCA received 291 new whistleblowing reports.
After the Q2 2022 reports, which piled up to 276 reports, whistleblowing is now growing. Along with this, FCA records a growing number of registered allegations rising by 55% to 734 allegations in total.
Most whistleblowers provided contact details, opposed to the minority of 37% who shared the data anonymously to protect their identity.
The majority of allegations fall into these pain points for workers:
- Fitness and propriety
- Treating customers fairly
- Compliance with the FSMA (Financial Services and Markets Act)
- Culture and compliance
Dr Henri Balany, head of industry and regulatory affairs at anti-fraud software company Encompass Corporation, claims that it is vital for employees to be able to anonymously report malpractice claims.
He says that banks and financial services companies need to strategically think about how they use innovative technology to “improve accuracy and efficiency”.