Source · Select Committees · Treasury Committee
Recommendation 36
36
Accepted
Collect data on non-disclosure agreement use by regulated firms in misconduct cases.
Recommendation
In the meantime, we recommend that the FCA collect data on the use of NDAs by regulated firms in cases of non-financial misconduct. This will provide a more detailed, quantitative picture of the extent of their use in financial services in harassment cases, which could provide valuable evidence to support further action. (Paragraph 168) Sexism in the City 45
Government Response Summary
The government states that the FCA recently issued a non-financial misconduct survey to wholesale firms to collect data on the use of confidentiality agreements in relation to various misconduct types, and they are currently assessing the responses.
Government Response
Accepted
HM Government
Accepted
As the Committee is aware, we recently issued a non-financial misconduct survey to wholesale firms in the insurance, insurance intermediary, banking and broking sectors. The survey covers the use of confidentiality agreements when settling complaints and requests a breakdown of data about what types of non-financial misconduct they have been used in relation to. We are currently assessing the responses to that survey and welcome an opportunity to share those findings with the TSC in the future. We may in future decide to issue similar surveys to other sectors of the industry. It is worth clarifying that confidentiality agreements cannot be used to prevent whistleblowing to the FCA only if the individual is making a protected disclosure, as defined in the Employment Rights Act 1996, as amended by the Public Interest Disclosure Act 1998. Several elements must be satisfied for a disclosure to be protected, including the fact that whistleblowers must reasonably believe that disclosing is in the public interest. This means that a whistleblower’s concerns must affect others in order for them to be protected. The Government also recently confirmed its intent to tighten the law around the use of NDAs in relation to potentially criminal misconduct.