Conscience, fear and the possibility of financial reward have spurred whistleblowers to offer information to regulators, raising the number of tip-offs to new highs.
The tough regulatory penalties emerging from the Libor scandal, as well as better incentives for whistleblowers, have encouraged more people to report potential wrongdoing to UK and US financial regulators, researchers have found.
As a result, in the year to October 31, the Financial Conduct Authority opened 72 percent more cases based on intelligence from whistleblowers than its predecessor did in the preceding 12 months. In April, the FCA took over supervision of the conduct of regulated financial companies from the Financial Services Authority.
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This sudden increase was revealed following a Freedom of Information request made to the FCA by Kroll, the investigations company that produced the research. FCA figures show that the regulator launched 254 new cases on the back of whistleblowers' information between November 2012 and October 2013, compared with 148 cases a year earlier.