A freedom of information (FoI) request by law firm Byrne and Partners discovered the number of whistleblowing cases opened by the FCA has fallen consistently to 793 in 2017 from almost double that number in 2014.
Managing partner Michael Potts said the figures represented a shift in behaviour which highlighted the “hostile environment” for employees trying to do the right thing.
“A common misconception is that whistleblowers are either acting out of self-interest, or have ‘defected’ from the business altogether,” he said. “In most of the cases we have advised on the actions of the whistleblower are usually in the interest of everybody, not just the whistleblower.
“Their actions help to restore the health and integrity of the company and the business sector as a whole.
“It’s true that protection for whistleblowers does exist, and it exists in a more robust manner than it used to. It is also true that greater focus is being placed on safeguarding whistleblowers and ensuring their rights are protected, which can be seen in initiatives like the Senior Managers Regime. But it’s clear that not enough is in place to make the difference.
“The only thing that should matter is empowering whistleblowers to voluntarily come forward; emboldened and secure. The evidence clearly shows that this is not the current environment that exists.”
The FCA declined to comment other than to note the number of enforcement investigations in general has increased over the same period.
Enforcement cases relating to all misconduct have more than doubled during the year to September compared to the whole of 2014.
