Report Reveals 23% Increase In FCA Whistleblower Calls

More Than 4,700 Calls To Hotline Across Past Year

21.11.2013

The number of calls to the Financial Conduct Authority's (FCA) specialist hotline for the reporting of concerns over malpractice within the sector has risen by 23 per cent, according to new research.

Figures obtained by City law firm RPC revealed 4,718 calls were made to the ‘whistleblower hotline’ in the 12 months to the end of August 2013, which marked an increase from the figure of 3,834 in the previous 12 months.

It was also shown that the number of calls made across 2010-11 reached 3,828, which led to suggestions that a change in attitude across the sector has been reflected in the statistics for the most recent period.

The FCA has numerous sanctions available to it in order to challenge misconduct, including the prohibition of activities, fines for those found to be in breach of rules, and criminal prosecutions related to financial crime.

News of the figures has come after a review by the FCA suggested many asset management firms and fund administrators do not have effective measures in place to tackle money laundering or corruption risks.

Expert Opinion
The increase in calls to the FCA’s whistleblowing service over the past 12 months is an interesting development which perhaps indicates that the difficulties in the financial services sector in recent years is leading to a change in attitude across the industry.

"If individuals are calling the FCA whistleblower hotline, it would be interesting to know if they are also reporting these concerns internally within firms they work in."
Sarah Wallace, Partner