This Prudential Regulation Authority (PRA) policy statement (PS) provides feedback on the responses received on PRA Consultation Paper 6/15 ‘Whistleblowing in UK deposit-takers, PRA-designated investment firms and insurers’. The consultation was published jointly with the Financial Conduct Authority (FCA) in February.
This PS will be of interest to the relevant firms (deposit-takers with assets greater than £250 million, PRA-designated investment firms and insurers - meaning insurance and reinsurance firms within the scope of Solvency II - and to the Society of Lloyd’s and managing agents), but also to individuals working in the financial services sector. It will also be of interest to a wider range of firms that may wish to comply voluntarily.
Most of the proposals in CP6/15 were broadly supported by respondents, and as such, the changes are relatively minor and mainly seek to offer clarifications as to the intent of the policy. The PRA will, therefore, take forward requirements that:
- firms establish internal whistleblowing channels and inform their staff about these arrangements;
- firms inform their staff about the whistleblowing services of the PRA and the FCA, as well as informing them of the legal protections offered under the Public Interest Disclosure Act 1998 (PIDA); and
- wording in employment contracts and settlement agreements should not deter staff from whistleblowing.
The proposals that have changed due to consultation responses are in the following areas:
- Chapter 2: the scope of the rules;
- Chapter 3: internal whistleblowing procedures;
- Chapter 4: employment contracts and settlement agreements; and
- Chapter 5: the ’whistleblowers’ champion’.
PRA Supervisory Statement SS39/15 ‘Whistleblowing in deposit-takers, PRA-designated investment firms and insurers’ has also been published alongside this PS.
Whistleblowing in deposit-takers, PRA-designated investment firms and insurers - PS24/15
1. Handbook Whistleblowing Instrument 2015
2. CRR Firms: Whistleblowing instrument 2015
3. Solvency II Firms: Whistleblowing Instrument 2015