What is the focus of the Review?
The Review will assess how the whistleblowing framework currently operates, including the Public Interest Disclosure Act 1998 and subsequent legislative and non-legislative interventions.
Research is expected to be concluded by Autumn 2023.
For a more detailed analysis of this Review, please see our Engage article “All Change? UK Government Reviews Whistleblowing Laws”
How does this Review follow a pattern of recent legislative proposals to reform corporate criminal liability?
This Review comes at a crucial moment in time as it coincides with legislators considering a reform to corporate criminal liability, most significantly through amendments proposed during the Economic Crime and Corporate Transparency Bill’s (“the Bill”) passage through the House of Commons and House of Lords.
The Government’s Economic Crime Plan 2 (2023-2026), published on 30 March 2023, further indicates the intention to implement the Bill and introduce the new failure to prevent fraud offence by Q3 2023.
Whistleblowing Reform in the Bill
The latest of such amendments to the Bill, proposed by Baroness Kramer in the House of Lords, indicates possible reform to the UK’s whistleblowing framework. If passed, the amendment would create an “Office for Whistleblowers”, a government entity tasked with protecting whistleblowers from detriment, ensuring disclosures made by whistleblowers are investigated, and providing an independent avenue for whistleblowing reports to be made.
Whilst the exact workings of the Office for Whistleblowers would need to be set out in more detail, in particular the commitment to investigate all disclosures made, there is international precedent for such a government body’s establishment. The US Securities and Exchange Commission, for example, has held an Office of the Whistleblower since 2011. Likewise in Europe, the requirements of the EU Whistleblowing Directive, which include the designation by Member States of authorities which are competent to receive and follow-up on whistleblowing reports, are being implemented by Member States.
Failure to Prevent Economic Crime Reform in the Bill
Proposed amendments to the Bill targeted at reforming corporate criminal liability have also included a proposal to create a “failure to prevent offence” for economic crime. Please see our previous Engage article for more information on this proposed new offence.
What does this mean for companies?
Reform to corporate criminal liability and whistleblowing appears to be more likely than ever and organisations should reflect on their current policies, procedures, and importantly resourcing, to ensure that they are fit for purpose and prepared for further reform.
Next steps
If you would like to find out more about what possible reform to the whistleblowing framework or corporate criminal liability could mean for your organisation and how best to update your existing policies and procedures, please get in touch with our team today.
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Authored by Arwen Handley, Olga Tocewicz, Daniela Vella, and Elizabeth Horton.
