On 24th June, the FCA published its 2024/25 Prescribed Persons Annual Report – more commonly known as its Whistleblowing Report.
The number of reports received continues to rise year-on-year, and the 1,131 reports received and assessed last year continue to assist the regulator in identifying wrongdoing and preventing harm.
The FCA data from the Whistleblowing Report
Key highlights from the report:
- 908 direct actions taken because of whistleblower reports
- 51% of concluded reviews led to regulatory intervention
- Over 67% of whistleblowers provided their identity, enabling deeper engagement
- The FCA continues to engage with other UK regulators and industry partners around offering incentives to whistleblowers
Top five allegations cited:
- 685 related to compliance
- 478 related to fitness and propriety
- 355 related to consumer detriment
- 348 related to the culture of an organisation
- 209 were made in respect of Consumer Duty
Other prominent areas include systems and controls, fraud and data security.
What this means for firms
The volume of reports across compliance, consumer detriment, culture and Consumer Duty highlights important questions around how firms have embedded the Duty to raise standards. The increase in compliance-related reports indicates a growing awareness of the role of internal culture and controls. There may be opportunities to strengthen the integration of Consumer Duty into governance.
Consumer Duty sets high and clear expectations for the protection of retail customers across financial services. As has been clear since implementation in 2023, there is a growing emphasis on behaviours and culture, and the FCA is focused on ensuring firms meet these expectations to protect consumers. It will continue to use the data gleaned from whistleblowing to inform its view, alongside its supervisory toolkit.
While the examples provided within the report are not exhaustive, they point to areas where some firms may benefit from enhanced focus, including:
- The application of Consumer Duty
- Sales and suitability
- Pressure selling
- Culture
In one case, a whistleblower’s report prompted a firm to reassess its sales processes to better align with Consumer Duty expectations. In another, a group of whistleblowers raised concerns about a firm’s operations, client advice, growth plans, and Consumer Duty alignment, leading to a section 166 review which identified valuable areas for improvement.
Put simply, whistleblowing reports are increasingly bringing to light where Consumer Duty governance can be enhanced and where cultural evolution may be beneficial. For firms, this represents a valuable opportunity to address these insights proactively and further reduce the risk of regulatory intervention.
Conclusion
One of the FCA’s aims is for Consumer Duty to underpin how firms treat customers, building client confidence and encouraging greater engagement with financial products. The increase in Culture and Consumer Duty-related disclosures shows that many firms are still on the journey toward fully realising these goals, with continued focus on outcomes and a demonstrable customer-first culture.
The volume of whistleblowing reports related to Compliance, Customer Detriment and Consumer Duty suggests that while progress is being made, many firms still have work to do to evidence full alignment with the Duty. Ongoing improvement is essential. This includes not only front-line activities but also the development of oversight, governance, MI and reporting frameworks that are effective across the three lines of defence, with SMFs clear on their responsibilities and accountabilities.
Now, more than ever, firms are encouraged to assess how well Consumer Duty is embedded and to carry out regular cultural assessments. Whistleblowers are not only raising concerns but are also helping to challenge and shape how firms treat both customers and employees. This report reinforces the message that embedding a healthy culture and upholding Consumer Duty expectations are key to building trust and achieving lasting success.
