ABSTRACT
This chapter demonstrates that banks have breached Principles for Businesses under high-level standards of the Financial Services Authority (FSA) Handbook and Principle 6 of the FSA's Treating Customers Fairly Initiative. It describes some improvements made to protection of whistle-blowers in new legislation. Whistle-blowers are still vulnerable because the culture in the financial sector remains a problem. Financial misconduct includes misselling payment protection insurance, manipulating the London Inter Bank Lending Rate (LIBOR) and failing to observe money-laundering rules. Whistle-blowers can play an important role in improving corporate governance due to the information asymmetry problem in the financial sector. In many ways, Ian Taplin's whistle-blowing encounter at Lloyds TSB is different to Paul Moore's at HBOS. Taplin was a former employee in the Wealth and Private department of Lloyds TSB between 2005 and 2010. Whistle-blowers are messengers of protected disclosures.
