Private fiduciary supported by 64% of financial service providers

Private fiduciary could be strengthened by the revelation 64 per cent of financial service providers favour tackling fraud through rewarding whistleblowers.

The Chartered Institute for Securities and Investment (CISI) carried out a survey that revealed almost two-thirds agree Britain should follow the US's lead, where new legislation means those who report financial crime are entitled to up to 30 per cent of any fine greater than $1 million (£623,874) levied against the guilty party.

This may support private and corporate fiduciary by improving peer monitoring and sending a message of non-tolerance when it comes to fraud on the scale committed by companies such as Enron.

One commentator observed: "Given that whistleblowers do not seem to receive appropriate protection from their employers, they need some compensation to offset the probable loss of their job."

Based in the UK, the CISI has produced an e-learning tool entitled Integrity Matters, aimed to develop users' skills when it comes to dealing with ethical challenges in a professional environment.  ADNFCR-2318-ID-800116227-ADNFCR