In Regulatory Wrap for the week to August 30, Jay Hampshire unpicks the difference in the U.S. and U.K. regulatory approach when it comes to whistleblowing.
In this Regulatory Wrap, we explore regulators varying attitudes on whistleblowing, with U.S. regulators like the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) rewarding the activity, while U.K. regulators like the Financial Conduct Authority (FCA) push for whistleblowing specifically for professional integrity.
1. In August, the SEC awarded four whistleblowers a combined total of $112 million for providing information relevant to investigations, demonstrating the substantial payout individuals receive for coming forward
2. Chief of the SEC’s Office of the Whistleblower Creola Kelly stated that whistleblowers provide “an incredible public service” by sharing details that play an “integral role” in enforcements
3. Considering these motivations, U.S. attorneys may encourage reporting to regulators to reap a portion of the benefits of payouts through commissions
4. On the U.K. side, the FCA believes that those working within financial services should offer necessary information out of professional integrity and a desire to “do the right thing” regardless of an incentive
5. With strong supervision systems and comprehensive technology to capture and flag risks that could lead to misconduct, firms should consider the need for whistleblowing
This episode is brought to you by our Senior Content Writer, Jay Hampshire.
Whistleblowing is one of the methods that supports regulatory investigation efforts and maintains financial integrity. Whether from a U.S. or U.K. perspective, regulators continue to pursue their objective of detecting and deterring misconduct.
