REGULATORY GUIDES

Question 1

PERIMETER GUIDANCE MANUAL

Answer 1

GIVES guidance on the circumstances in which authorisation is required or exempt status is available

Issued under SECTION 165 of FSMA. It represents the views of the FCA and the PRA and does not bind the courts. It will not bind the courts in an action for damages brought by a private pension for breach of a rule

Although the guidance does not bind the courts, it may be of persuasive effect for a court considering whether it is just and equitable to allow a contract to be enforced.

Question 2

PERIMETER REPORT 2021-22

Answer 2

Published in 2022

Key highlights from the report
- steps taken to reduce harm, monitor and assess the potential for harm

• where they can consider that harm can occur such as new products/services
• powers to act against unregulated activities - some powers of the FCA firms undertaking unregulated activities
• looking at specific activities such as Appointed representatives and FCA Policy statement and final rules published
• Unregulated collective investment schemes
• mass marketing of high risk investments to retail customers

Question 3

WHISTLEBLOWING

Answer 3

The Public Interest Disclosure Act 1998 introduced people to protect people from retaliation

In 2016 firms must establish and maintain appropriate and effective arrangements

Question 4

What are the new rules on whistleblowing from 2016

Answer 4

firms must
- be able to handle disclosures of reportable concerns

• ensure the effective assessment and escalate reportable concerns by whistleblowers where appropriate
• include reasonable measures to ensure that if a reportable concern is made by a whistleblower
• provide feedback to a whistleblower about a reportable concern made to the firm by that whistleblower
• including preparation and maintenance of appropriate records and up to date written procedures
• include training for
  1. UK based employees
  2. managers of UK based overseas firms
  3. employees responsible for operating the firm’s internal arrangements

Question 5

Outline the whistleblower champion

Answer 5

certain firms are required to appoint a whistleblower champion

firms must allocate the responsibility for ensuring and overseeing the integrity and independence of a firm’s policies and procedures on whistleblowing

the whistleblowing champion must have a level of authority and independence within the firm and access to resources and information sufficient to carry out the responsibility

Question 6

The government’s 2023 review of the whistleblowing regime

Answer 6

how has the regime facilitated disclosures?

how has the regime protected workers?

is information available and accessible for workers, employers, prescribed persons and others?

what have been the wider benefits and impacts of the whistleblowing framework?

what does best practice look like for whistleblowers?

Question 7

2022 Bill for the protection of whistleblowers

Answer 7

it was tabled in the HoL and needs to be put through the HoC

• expansion on what classifies a protected disclosure
• expansion on the definition of whistleblower to include non-employees
• creation of the office of the whistleblower to act as an independent body to oversee processes and guidance/having enforcement powers
• potential for substantial civil penalties such as a company facing a fine for failing to comply with obligations
• Introduction of new criminal offences such as ‘subjecting a whistleblower to detriment’