Wednesday, 08 January 2014 09:41
35% rise in whistleblowing to the FCA
Whistleblowing to the FCA has risen by 35% in the last year, according to newly released figures.
The FCA received 5,150 contacts to its whistleblowing helpline between November 2012 and October 2013 compared to 3,813 in the same period the previous year.
The increased number of contacts is also resulting in a 72% increase in the number of new cases being created.
The details came through a Freedom of Information Act request by Kroll, the global investigations firm.
Separate analysis from Kroll revealed that whistleblowers from the UK were responsible for 16 per cent of overseas tip-offs to the US Securities and Exchange Commission in the last US fiscal year, more than any other country (see table below).
Kroll's analysis of the SEC's annual report on its whistleblower programme reveals that of 3,238 tip-offs received in total in the past year, 404 (12%) came from outside the US, a 25% increase on the 324 overseas tip-offs last year. Whistleblowers based in the UK were responsible for 66 of these.
Benedict Hamilton, a managing director at Kroll, said: "As companies increasingly invest in often risky emerging markets and more stringent regulation and guidance governing whistleblowing procedures is introduced, we believe cases of whistleblowing will continue to rise.
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"The UK authorities are considering offering rewards to whistleblowers, as they are a very effective way of discovering fraud.
"The increase in overseas whistleblower tip-offs to the SEC shows the policy's impact on international companies in particular.
"Those thinking about reporting corporate malpractice might be tempted to go to the US regulator rather than their own company, wherever they are based in the world, in the hope of receiving a substantial reward.
"This reinforces just how important it is for companies to implement robust whistleblower procedures so they can find out about any wrongdoing being carried out by their employees as early as possible."
The FCA received 5,150 contacts to its whistleblowing helpline between November 2012 and October 2013 compared to 3,813 in the same period the previous year.
The increased number of contacts is also resulting in a 72% increase in the number of new cases being created.
The details came through a Freedom of Information Act request by Kroll, the global investigations firm.
Separate analysis from Kroll revealed that whistleblowers from the UK were responsible for 16 per cent of overseas tip-offs to the US Securities and Exchange Commission in the last US fiscal year, more than any other country (see table below).
Kroll's analysis of the SEC's annual report on its whistleblower programme reveals that of 3,238 tip-offs received in total in the past year, 404 (12%) came from outside the US, a 25% increase on the 324 overseas tip-offs last year. Whistleblowers based in the UK were responsible for 66 of these.
Benedict Hamilton, a managing director at Kroll, said: "As companies increasingly invest in often risky emerging markets and more stringent regulation and guidance governing whistleblowing procedures is introduced, we believe cases of whistleblowing will continue to rise.
{desktop}{/desktop}{mobile}{/mobile}
"The UK authorities are considering offering rewards to whistleblowers, as they are a very effective way of discovering fraud.
"The increase in overseas whistleblower tip-offs to the SEC shows the policy's impact on international companies in particular.
"Those thinking about reporting corporate malpractice might be tempted to go to the US regulator rather than their own company, wherever they are based in the world, in the hope of receiving a substantial reward.
"This reinforces just how important it is for companies to implement robust whistleblower procedures so they can find out about any wrongdoing being carried out by their employees as early as possible."
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