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UNI Europa Finance believes that a well-functioning legislative framework for whistle-blowing, especially for the finance sector, must be established in the EU. The framework should aim at providing employees in the finance sector with safe and efficient channels for reporting unethical and/or criminal behaviour to independent, external agencies.



In the wake of financial crisis it has become clear that deficiencies in internal control mechanisms in financial sector companies were one of the factors behind the crisis. These deficiencies led to a situation where possible early warnings regarding the state of play in many financial companies simply did not reach the general public and the many stakeholders in the sector.



Whistle-blowing is, indeed, about ensuring that early warnings from the bottom and up will reach the competent supervisory authority. This authority should have the power, the mandate and resources to follow-up on the warnings and, where necessary, investigate the entire company. UNI Europa Finance is of the firm belief that employees are the first to recognize a systemic failure or a risky business, since it is part of their day-to-day-operations.



Whistle-blowing would not only ensure a fast and efficient “point of entry” for national supervisors, but also provide employees with a measure where their concerns are taken seriously. National supervisors should consult with employee representatives in a suitable fashion, be it through anonymous “hot-lines” or scheduled, consultative meetings with trade unions. It is important to stress that for employees to be able to provide this information in an orderly fashion, the national supervisors must be able to create reliable systems for this, which are not filtered by a strong director or board of directors.



Research in the field shows that effectively implemented whistle-blowing systems – and a corporate culture that supports them – have had a significantly larger impact than internal audit when it comes to detect and rectify misconduct in companies.



Widespread training and continuous update of financial sector employees about their rights and possibilities regarding whistle-blowing is essential as well as a corporate culture that embraces the positive use of whistle-blowing in finance companies.



UNI Europa Finance is committed to cooperate with other stakeholders that have an interest in these issues, such as NGOs and governmental agencies, to put focus on the benefits of well-functioning whistle-blowing mechanisms.



Transparency International on Whistleblowing.