PRA Finalizes New Whistleblower Policies
The United Kingdom’s (UK) Prudential Regulation Authority (PRA) recently issued a policy statement on a consultation paper published in February of this year, entitled “Whistleblowing in UK deposit-takers, PRA-designated investment firms and insurers.” The PRA collaborated with the Financial Conduct Authority (FCA) in developing the proposed policy changes governing whistleblower procedures and protections. The new rules apply to depository institutions with more than £250 million in assets and PRA-designated investment firms and insurers.
According to the policy statement, the PRA will move forward in requiring that firms create “internal whistleblowing channels” and appropriately inform their staff. Covered entities must also inform staff about PRA and FCA whistleblowing policies. The rules also stipulate, “wording in employment contracts and settlement agreements should not deter staff from whistleblowing.” Based on feedback received on the initial consultation paper, the PRA has altered the scope of the rules, the whistleblowing procedures, and employment contract requirements.
PRA Policy Statement: