The Financial Conduct Authority (FCA) received 1,131 whistleblowing reports between 1 April 2024 and 31 March 2025. These reports generated 2,684 separate allegations. The FCA said the information led to direct action 908 times, ranging from formal reviews to enforcement steps. A key focus this year was the growing number of allegations linked to consumer duty, following the rule’s implementation in 2023.

Consumer Duty: Emerging as a Concern

Out of the total allegations, 209 were related to consumer duty, placing it among the top ten most-reported categories. Allegations included mis-selling, inadequate advice, and a lack of focus on customer outcomes. Compliance was the most frequently cited issue, with 685 allegations.

The FCA’s 2023 quarterly whistleblowing data shows that Consumer Duty was introduced as a distinct category in the third quarter. In that period, the FCA received 280 new reports containing 794 allegations, grouped into five main themes: fitness and propriety; treating customers fairly/Consumer Duty; FSMA; culture; and compliance.

In the fourth quarter, the FCA received 249 new reports with 649 allegations. The most frequent allegation types remained Consumer Duty, compliance, fitness and propriety, and culture.

The FCA noted that consumer duty has now replaced “Treating Customers Fairly” in its categorisation process. It reflects how the new framework has become a benchmark for judging firm behaviour across the sector.

Regulatory Actions Driven by Whistleblowing

Several examples from the reporting period show how consumer duty failings triggered FCA responses. In one case, a group of whistleblowers raised concerns about a firm’s advice practices, growth strategy, and weak customer focus. The FCA ordered a section 166 review. The firm accepted the findings and committed to making improvements.

Another whistleblower flagged a culture of pressure-selling driven by management. Following FCA engagement, the firm revised its sales practices to meet consumer duty expectations. In a separate incident, the FCA required a firm to review historical client sales after a whistleblower reported mis-selling.

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FCA’s Supervisory Role and Objectives

The FCA oversees the conduct of about 42,000 UK financial firms and prudentially supervises around 41,000 of them. Its main goals include protecting consumers, maintaining market integrity, and supporting effective competition. Since 2023, it has also had a duty to consider the UK’s long-term economic competitiveness, though not at the cost of core consumer protections.

Outcomes from Whistleblowing Reviews

Of all whistleblowing reviews completed in 2024/25, 51% led to direct action, including enforcement steps and formal reviews. Another 47% prompted actions to reduce harm, such as firm visits and compliance checks. About 40% of reports supported ongoing supervisory work, though no immediate steps were taken. A small portion of reports were recorded for future reference or fell outside the FCA’s remit.

Confidentiality and Whistleblower Support

The FCA said all reports are treated confidentially. Whistleblowers may remain anonymous, but those who provide contact details enable the regulator to seek additional information if needed. The FCA has enhanced its final feedback letters to explain what actions were taken, subject to legal limits.

This article was written by Tareq Sikder at www.financemagnates.com.Retail FXRead More

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