More Prosecutions Expected in 2014 Following Rise in Whistleblowing
20 Jan 2014 | 02:17 pm | 1 min. read
Prosecutions for white collar crime in the financial services sector are likely to increase in 2014 following an 38% rise in the number of whistleblowing reports received by the FCA's 'Whistleblowing desk', according to international law firm Pinsent Masons.
Data obtained from the Financial Conduct Authority by Pinsent Masons shows that whistleblowing reports have increased by 38% since the FCA took over from the FSA in April 2013. Reports increased from an average of 338 a month in the FSA's final year to an average of 467 a month in the first seven months since the FCA took over as regulator.
1,118 reports (since March 2012) were deemed serious enough to be pursued by the regulator; of these roughly 60% (683) were about general regulatory concerns. Investigations into more serious wrongdoing were fairly low. There were just 4 reports of 'Misappropriation of client Money', 23 of 'Insider trading', 21 of 'Market manipulation' and 25 cases of 'Money laundering' were pursued.
Michael Ruck, a senior financial services enforcement lawyer at Pinsent Masons and formerly with the Financial Conduct Authority says:
"The recent rise in whistleblowing reports is not necessarily a result of more wrongdoing in the City. Instead it is likely the result of the combination of increased focus on compliance and the tightening of controls following criticism from the financial regulator.
"People working in FCA regulated firms are becoming increasingly aware of their reporting obligations. The threat of multi million pound fines and a new push toward personal accountability means that staff at authorized firms, their suppliers and clients are all now very aware of their compliance obligations.
"The UK already has some of the highest whistleblowing rates world wide* and numbers are set to increase even further if plans to financially incentivise whistleblowers who report crimes are implemented."
"Under new government plans Whistle-blowers who report financial crime could be rewarded with a cut of the money they gain back for the taxman. No doubt this will lead to a surge of white-collar informants seeking big payouts."
* U.S. Securities and Exchange Commission, Annual Report on the Dodd-Frank, Whistleblower Program, Fiscal Year 2012 http://www.sec.gov/about/offices/owb/annual-report-2012.pdf
Latest press releases
Show me all press releasesPinsent Masons advises TotalEnergies on disposal to Serica
Multinational law firm Pinsent Masons has advised supermajor TotalEnergies E&P UK Limited (TotalEnergies) on the sale of its 40 per cent operated interests in the Greater Laggan Area gas fields in the West of Shetland, and the onshore Shetland Gas Plant, to AIM-listed oil and gas independent Serica Energy Plc (Serica).
Pinsent Masons launches new advisory proposition to help boards close the growing ‘say–do gap’ in climate and sustainability disclosures
Pinsent Masons has launched a new advisory proposition designed to help boards, directors, trustees and senior leaders navigate rapidly expanding legal and regulatory expectations around climate and wider sustainability disclosures.
Pinsent Masons advises Pension Insurance Corporation on its acquisition of Ebb and Flow
Pinsent Masons has advised Pension Insurance Corporation (PIC) on its landmark acquisition of Ebb & Flow, a fully let 598‑unit build‑to‑rent scheme in Reading, in a deal exceeding £200 million.
People who viewed this press release also viewed
Show me all press releasesPinsent Masons advises TotalEnergies on disposal to Serica
Multinational law firm Pinsent Masons has advised supermajor TotalEnergies E&P UK Limited (TotalEnergies) on the sale of its 40 per cent operated interests in the Greater Laggan Area gas fields in the West of Shetland, and the onshore Shetland Gas Plant, to AIM-listed oil and gas independent Serica Energy Plc (Serica).
Pinsent Masons launches new advisory proposition to help boards close the growing ‘say–do gap’ in climate and sustainability disclosures
Pinsent Masons has launched a new advisory proposition designed to help boards, directors, trustees and senior leaders navigate rapidly expanding legal and regulatory expectations around climate and wider sustainability disclosures.
Pinsent Masons advises Pension Insurance Corporation on its acquisition of Ebb and Flow
Pinsent Masons has advised Pension Insurance Corporation (PIC) on its landmark acquisition of Ebb & Flow, a fully let 598‑unit build‑to‑rent scheme in Reading, in a deal exceeding £200 million.
For all media enquiries, including arranging an interview with one of our spokespeople, please contact the press office on
Location contacts
Europe: [email protected]
Asia: [email protected]
Middle East: [email protected]
Australia: [email protected]