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.
Last year we took action against 908 firms following whistleblower reports.
We continue to work efficiently to resolve all reports to identify and disrupt harm. https://t.co/9MdPm3gRBx#SmarterRegulator pic.twitter.com/En0AuGUF2G— Financial Conduct Authority (@TheFCA) June 27, 2025
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.
You may find it interesting at FinanceMagnates.com: “Decreasing
Regulatory Burden is a Focus” in Market Overhaul, Says FCA’s Holland.
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.
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.
Last year we took action against 908 firms following whistleblower reports.
We continue to work efficiently to resolve all reports to identify and disrupt harm. https://t.co/9MdPm3gRBx#SmarterRegulator pic.twitter.com/En0AuGUF2G— Financial Conduct Authority (@TheFCA) June 27, 2025
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.
You may find it interesting at FinanceMagnates.com: “Decreasing
Regulatory Burden is a Focus” in Market Overhaul, Says FCA’s Holland.
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 post is originally published on FINANCEMAGNATES.
