Financial Incentives for Whistleblowers: Note by the Financial Conduct Authority and the Prudential Regulation Authority for the Treasury Select Committee

FCA/PRA note to the Treasury Select Committee (Jul 2014) rejecting financial incentives for whistleblowers: US research findings, moral hazards, comparison with CMA/HMRC informant (CHIS) payments, planned annual whistleblowing reports. Numbers present are about FCA whistleblowing case volumes, not a reward programme (cases up 55% 2011-2012 and 42% 2012-2013; expected to rise about 30% in 2014 to around 1,200; under 1% of cases lead to financial penalties) and are out of scope because the dataset has no FCA programme. Its two events (BIS response 25 Jun 2014; FCA/PRA decision) were already recorded.