The EU Whistleblowing Directive – the countdown to commencement in Ireland is on

The EU Whistleblowing Directive is currently being transposed into national laws across the European Union. In Ireland, the Protected Disclosures (Amendment) Act 2022 comes into force on 1 January 2023. It brings with it a number of crucially important changes to the existing Protected Disclosures Act 2014 (2014 Act).

The most material changes include the introduction of a requirement for many employers to have a whistleblowing policy, the creation of a new criminal offence for non-compliance, the introduction of new avenues of redress for whistleblowers who allege they have been penalised and the reversal of the burden of proof in such claims. The WRC has already advised that it is expecting an increase in Protected Disclosures Act claims next year. It is vital that employers ensure they are compliant with the amended Act and are in a position to deal with whistleblowing reports under the new regime from 1 January 2023 onwards.

There are two key points of note from a financial services perspective:

• From 1 January 2023, employers who fall within the scope of certain EU financial services laws, such as banks, payment services providers, insurance firms, investment firms and asset managers, must have formal internal reporting channels and procedures in place for workers, to enable them to make protected disclosures. Failure to do so is a criminal offence that can be prosecuted by the WRC.
• The Central Bank (Supervision and Enforcement) Act 2013 provides a separate protected disclosure regime in respect of specific financial services breaches.  It also provides for an obligation on individuals holding 'pre-approval controlled functions' to report certain financial services contraventions to the regulator.  Whilst the Central Bank regime is separate to the more general regime under the 2014 Act, regulated firms will need to ensure their preparations for the new general whistleblowing regime integrate appropriately with the separate Central Bank regime. 

Financial services firms must therefore be fully aware of, and ensure compliance with, their protected disclosure obligations under both regimes.

At A&L Goodbody we have been advising clients for many months on what steps they need to take to prepare for the new whistleblowing regime. In this short video, we cover what employers really need to know about the new regime and also outline what employers can do between now and the end of the year to ensure compliance.

The recently published interim government guidance which we refer to in the video is available HERE. While this guidance is primarily aimed at public bodies and prescribed persons, it contains material which is undoubtedly relevant to private sector employers looking to get to grips with the new legislation.

For further information on the Protected Disclosures (Amendment) Act 2022 and what its commencement means for your business, please contact Michael Doyle, Partner Employment, Triona Sugrue, Knowledge Lawyer Employment, Dario Dagostino, Partner Regulatory Investigations, Mark Devane, Partner Regulatory Investigations, Patrick Brandt, Partner Financial Regulation, Christopher Martin, Of Counsel Financial Regulation, Sian Langley, Knowledge Lawyer Financial Regulation, or your usual ALG contact.

Date Published: 13 December 2022