The number of new whistleblowing reports received by the FCA rose 25% year on year to 315 between April and June (Q2 2024: 253 reports).
The number of reports submitted showed a 12% rise on the first quarter.
Compliance continued to be the top source of whistleblowing complaints, with 63% of the reports in Q2 including allegations related to compliance, in line with 65% of 2024 complaints.
The most common allegations reported by whistleblowers were compliance (199), fitness/propriety (162), culture of the organisation (147) and Consumer Duty (98).
Of the 315 new reports, 68% (213) were submitted by a whistleblower who chose to reveal their identity to the regulator.
The online reporting form remained the most commonly used method to submit whistleblowing reports to the regulator with 155 of the new reports submitted using it. Of the remaining reports 89 were submitted by email, 52 by telephone, 7 by letter, and 12 by another method.
The rise in whistleblowing reports comes as failure to prevent fraud becomes a prosecutable offence from 1 September, as well as new FCA rules on non-financial misconduct which are due to come into force from 1 September 2026.
Erin Sims, fraud risk services director at RSM, said: “The surge in whistleblowing reports is a clear signal that more staff are choosing to speak up. It should also serve as a reminder for firms to review their whistleblowing procedures and ‘speak up’ culture given the growing scrutiny in this area from the regulator."
The FCA closed 350 whistleblowing reports between April and June. It took significant action to manage harm as the result of 8 reports (2%). This may include enforcement action, a section 166 skilled person report or restricting a firm’s permissions or an individual’s approval.
It took action to reduce harm in a further 147 reports (42%), which may include writing to or visiting a firm, asking a firm for information, or asking a firm to attest to complying with its rules.
The regulator used 181 reports (52%) to inform its work, including harm prevention, but took no direct action.
Just 11 reports (3%) were not considered indicative of harm.
The FCA report said: “The FCA is committed to ensuring all of our staff, all the way up to board level, are aware of how to appropriately handle whistleblowing matters. We provide guidance and mandatory training which reinforces the importance of protecting whistleblower confidentiality and understanding the internal processes for escalation.”
The FCA is legally required to publish an annual report on whistleblowing under the Prescribed Persons Regulations 2017.
