INSIGHT
Since 2011, the US Securities and Exchange Commission has been able to pay rewards to informants of corporate misconduct, subject to certain conditions being satisfied. Although such rewards are still relatively few, last year, the US markets watchdog awarded $279m to a whistleblower, its largest-ever payout.
A study by RUSI (Royal United Services Institute) has argued that UK should break its “long-held antipathy” to paying whistleblowers in order to reduce economic crime. The think tank found that launching an effective whistleblower payments programme could play a “pivotal role” in reducing white-collar offences.
SFO director Nick Ephgrave, who has publicly backed a scheme, said: “I would like to see the UK move to a model where financial incentives are available to encourage whistleblowers to come forward.”
Form an employer’s point of view, it remains critical to have whistleblowing arrangements in place. A truly effective speaking up program ensures that everyone in the organisation recognises that speaking up is expected and welcomed, that reports are fully and fairly investigated and that reporters are protected from retaliation. An effective internal whistleblowing program often means that reporters are less inclined to take their concerns elsewhere, even where rewards may be available.
Quarmans has deep experience of designing and implementing speaking up programs, or equally, reviewing existing programs to assess and improve their effectiveness.
