The PRA and the FCA have shown that they are willing to hand out sizable personal fines to leaders who act inappropriately in cases of whistleblowing.
The reputational damage to any business behaving in this way may be extensive. It is clearly sensible for companies to put in place robust whistleblower policies and procedures, and provide training to everyone, including the leadership.
Is it also time to provide a regulatory compensation framework for whistleblowers in the financial services sector, along the lines of the US Dodd-Frank Wall Street Reform and Consumer Protection Act?
Barclays chief executive Jes Staley has been fined £642,000 by City watchdogs for failing to act with skill, care and diligence after trying to discover the author of an anonymous whistleblowing letter. According to a notice from the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) today Staley has been fined a total of £642,430. This, according to the regulators, takes into account 10% of Staley’s ‘relevant annual income’ and the fact he had earlier agreed a settlement.