UK Whistleblowing Update

The Financial Conduct Authority received 333 new whistleblowing reports between April and June 2026, broadly in line with the previous quarter, and closed 395 reports in the same period, according to the regulator's quarterly data cited by the publishing law firm. The most notable change was that the FCA took "significant action to manage harm", including enforcement action, a section 166 skilled person report, or restricting a firm's permissions or an individual's approval, in 14% of closed reports, an 11.7% increase on the same period in 2025. Consumer Duty remained the most cited allegation, appearing in almost 60% of reports received. The FCA has opened 11 enforcement investigations into potential Consumer Duty breaches, six of them in the insurance sector. The House of Lords Financial Services Regulation Committee has criticised the FCA's lack of enforcement action on Consumer Duty in insurance. Allegations about firms' whistleblowing systems and controls appeared in roughly 6.3% of reports.

The FCA is again under scrutiny over its own whistleblowing arrangements, a concern that dates back to 2019 parliamentary criticism and a 2022 whistleblower survey in which over 71% of respondents were dissatisfied with the FCA's handling of reports. Most recently, the FCA has faced criticism over its dealings with whistleblower Simon Andriesz, a former BGC Group employee. On 6 October 2026 the regulator asked Lea Paterson, its newly appointed independent non-executive director, to review its interactions with Mr Andriesz. Backlash from MPs and an APPG prompted a call for an independent investigation. The FCA subsequently broadened the review's scope, per its published Terms of Reference, to consider whether it met its whistleblowing law obligations and followed its own policies. Ms Paterson will be supported by independent external legal advisers, with a progress update due January 2027 and a final report expected in spring 2027.

On 12 October 2026 the UK government launched a consultation on whistleblowing under the Employment Rights Act 1996, covering eight areas including extending protections to charity trustees, non-executive directors and certain self-employed individuals; the public interest test; disclosure routes; mandatory whistleblowing policies; the seven-day interim relief window; a possible central whistleblowing body; and financial incentivisation. Implementation would expand the range of individuals able to bring claims and could create new employer compliance obligations, though changes are unlikely for some time. The government's response is expected in 2027.

The consultation's incentivisation proposal follows Jonathan Fisher KC's July 2026 review, which found support for a UK scheme while flagging risks, including that juries may distrust financially rewarded testimony. The government's preferred approach mirrors aspects of the SEC programme, including an originality requirement and similar award calculation and splitting principles. Commentators note the scheme's success will depend on the SFO's willingness and capacity to resource it, given criticism of its disclosure failings and of its handling of material subject to legal professional privilege in an HMCPSI report published in October 2026. Firms are advised to review whistleblowing policies, training and investigation procedures now.