Financial Services Spotlight

Whistleblower Policies

Posted by Roy Andersen on Jan 25, 2019 10:56:17 AM

On January 7, 2019, the New York State Department of Financial Services (the "DFS") issued new guidance on whistleblowing programs ("WP") to all entities regulated by the DFS regardless of industry, size or number of employees—hello representative offices, bit licensees and money services companies.

The DFS defines whistleblowing as:

reporting of information reasonably believed to constitute illegality, fraud, unfair or unethical conduct, mismanagement, abuse of power, unsafe or dangerous activity or other wrongful conduct including conduct that might affect safety, soundness or reputation

Anybody can be a whistleblower including employees (and ex-employees), vendors, outside counsel (!) and customers.

While the DFS recognized that a whistleblower program has to be tailored to the characteristics of the regulated entity; nevertheless, all regulated entities should design and have a WP as an "essential" part of a compliance program. 

Read More

Topics: Whistleblowers, New York State Department of Financial Services, DFS, whistleblowing programs

About the Spotlight


The Financial Services Spotlight examines the regulatory and technology developments impacting banks, asset managers and other financial services providers—where challenges meet opportunities.

The material on this site is for general information only and is not legal advice. No liability is accepted for any loss or damage which may result from reliance on it. Always consult a qualified lawyer about a specific legal problem.

 

Meet the Authors


Roy C. Andersen, of counsel in Sullivan & Worcester's New York office, is a member of the Corporate Department. Mr. Andersen focuses on bank regulatory and compliance matters, including international banks and their branches and agencies in New York.

Joel Telpner, partner in the firm's New York office, is a seasoned advisor, strategist and problem solver. Mr. Telpner brings more than 30 years of legal experience in a career that includes time as an AmLaw 100 partner, the former U.S. general counsel of a global financial institution, and a venture capitalist. He is recognized for his ability to deftly manage complex financial transactions, especially those involving sophisticated structured finance and derivatives matters and has an extensive and unique combination of transactional and regulatory experience.

Subscribe to the Spotlight

Recent Posts

Posts by Topic

see all