German financial watchdog sets up whistleblower system

Germany’s financial watchdog is to provide a single point of contact for corporate whistleblowers in an attempt to make it easier for workers to report possible misconduct in their businesses.

BaFin said the system, a requirement under a new German law, would be up and running from today.

“Whistleblowers are very important in identifying breaches of regulatory law,” the regulator said.

“They can play a valuable role in uncovering misconduct by individuals or whole companies in the financial sector, and in limiting the negative effects of this behaviour, as well as correcting it.

“However, people providing information need to be sure that they will not be put at a disadvantage if they reveal their identity in providing information to BaFin.”

BaFin’s move is the latest attempt by a national regulator to incentivise whistleblowing. Last year, regulators in the United Kingdom said banks and insurers would have to appoint “whistleblowing champions”. – Copyright The Financial Times Limited 2016