CeMAP FRE2 Ethics, Professional Standards & CPD question: Tariq works for a small mortgage brokerage

CeMAP FRE2Ethics, Professional Standards & CPD

Tariq works for a small mortgage brokerage that SYSC 18 does not bind. He reasonably believes his firm is falsifying income evidence on applications, and reports it to the FCA. Which statement is correct?

A He can still be protected under PIDA 1998, as the FCA is a prescribed person
B He has no protection, because the SYSC 18 whistleblowing rules do not apply to his firm
C He is protected only if he reported internally first and then waited at least 8 weeks
D He is protected only if the FCA later finds that the firm committed wrongdoing

Show the answer and explanation

Answer: A. He can still be protected under PIDA 1998, as the FCA is a prescribed person

SYSC 18 binds only certain firms (SYSC 18.1.1AR); others may adopt it as best practice (SYSC 18.1.1CG). Protection for workers comes from the Public Interest Disclosure Act 1998, which inserted Part IVA into the Employment Rights Act 1996 and protects disclosures to prescribed persons such as the FCA (ERA 1996 s43F). Protection depends on reasonable belief, not on proof of wrongdoing, and there is no 8-week internal waiting period.

Common mistake

Assuming legal whistleblowing protection depends on whether SYSC 18 applies to the employer.

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Original practice material mapped to the published CeMAP FRE2 learning outcomes. Independent, not endorsed by Walbrook (formerly LIBF). Verify figures and rules against current guidance before relying on them.