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SYSC 18.1 Application and purpose24

Application2

SYSC 18.1.1G

[deleted]2

1
SYSC 18.1.1AR

2This chapter applies to:

  1. (1)

    a firm;

  2. (2)

    in relation to the guidance4 in SYSC 18.3.9G, 45every firm; 5

    4
  3. (3)

    in relation to SYSC 18.3.6R and SYSC 18.3.10R, EEA relevant authorised persons and third-country relevant authorised persons only in relation to a branch maintained by them in the United Kingdom; and5

    4
  4. (4)

    in relation to SYSC 18.6.1R to SYSC 18.6.3G (Whistleblowing obligations under MiFID):5

    1. (a)

      a UK MiFID investment firm, except a collective portfolio management firm; and5

    2. (b)

      a third country investment firm; and5

  5. (5)

    in relation to SYSC 18.6.4G to SYSC 18.6.5G (Whistleblowing obligations under other EU legislation), a person within the scope of the identified EU sectoral and cross-sectoral legislation.5

SYSC 18.1.1AAG

2Firms are reminded that for the purpose of SYSC 18 (except for SYSC 18.3.9G) “firm” has the specific meaning set out in paragraph (8) of that definition in the Glossary, namely:

  1. “(8) (in SYSC 18, with the exception of the guidance in SYSC 18.3.9G):5

    (a) a UK relevant authorised person 3except a small deposit taker; and

  2. (b)

    a firm as referred to in Chapter 1.1 of the PRA Rulebook: Solvency II Firms: Whistleblowing Instrument 2015.”

SYSC 18.1.1BR

2In this chapter, a reference to a provision of the Employment Rights Act 1996 includes a reference to the corresponding provision of the Employment Rights (Northern Ireland) Order 1996.

SYSC 18.1.1CG

2A firm not referred to in SYSC 18.1.1AR may adopt the rules and guidance in this chapter as best practice. If so, it may tailor its approach in a manner that reflects its size, structure and headcount.

Purpose

SYSC 18.1.2G
  1. (1)

    The purposes of this chapter are to2:

    1. (a)

      set out the requirements on firms in relation to the adoption, and communication to UK-based employees, of appropriate internal procedures for handling reportable concerns made by whistleblowers as part of an effective risk management system (SYSC 18.3);2

    2. (b)

      set out the role of the whistleblowers’ champion (SYSC 18.4);2

    3. (c)

      require firms to ensure that settlement agreements expressly state that workers may make protected disclosures (SYSC 18.5) and do not include warranties related to protected disclosures;2

    4. (ca)

      implement the whistleblowing obligation under article 73(2) of MiFID, which requires MiFID investment firms (except collective portfolio management firms) to have in place appropriate procedures for their employees to report potential or actual infringements of MiFID and MiFIR (SYSC 18.6);5

    5. (cb)

      outline other EU-derived whistleblowing obligations similar to those in article 73(2) of MiFID, some of which may also be applicable to MiFID investment firms (SYSC 18.6);5

    6. (d)

      outline best practice for firms which are not required to apply the measures set out in this chapter but which wish to do so; and2

    7. (e)

      outline the link between effective whistleblowing measures and fitness and propriety.2

  2. (2)

    [deleted]2

SYSC 18.1.3G

[deleted]2