The guidelines outlining operational standards include explicit assurances of confidentiality, continuation of employment or association, and safeguards against discrimination, coupled with a safe-harbour clause for good-faith reporting.
FACE has also called for maintaining a centralised and secure logbook/database of complaints, actions taken, and closure status, retained as per the company’s privacy policy. (Source: AI Image)
Fintech self-regulatory organisation (SRO) Fintech Association for Consumer Empowerment (FACE) on Tuesday released guidelines on the whistleblower mechanism. The industry-led self-regulatory standards are formulated to strengthen the internal workings of fintech companies by giving their employees and stakeholders a safe conduit to report improper activities and misdeeds within.
By encouraging disclosures in good faith and ensuring protection against retaliation, the guidelines align company culture with the highest standards of professionalism, integrity, and accountability, FACE said in a statement.
“For fintechs, whistleblowing can be the leading oversight mechanism for uncovering the wrongdoings and malpractices, ahead of audits or external reviews across business functions. These guidelines aim to institutionalise a conducive environment to encourage whistleblowing, removing fear of retaliation and suspicion of inaction,” said Sugandh Saxena, CEO, FACE.
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The guidelines outlining operational standards include explicit assurances of confidentiality, continuation of employment or association, and safeguards against discrimination, coupled with a safe-harbour clause for good-faith reporting. It also asserts that policies must be prominently displayed, accessible on internal platforms, included in employee induction, and reinforced through annual training for staff and investigators.
It also suggests at least two secure and confidential options for raising concerns and acknowledging complaints within seven working days. Moreover, all disclosures are to be reviewed by the internal whistleblower committee, with periodic reporting to the audit committee, FACE, and ultimately the RBI as required.
The guidelines also call for independent investigations with conflict-of-interest declarations by investigators, provision to engage third-party professionals for sensitive cases, fair hearings for subjects, and proper documentation of findings and outcomes.
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FACE has also called for maintaining a centralised and secure logbook/database of complaints, actions taken, and closure status, retained as per the company’s privacy policy. Further, investigations are to be completed within 90 days and extendable by another 90 days with audit committee approval.
“If an investigation leads to a conclusion that an improper or unethical act has been committed, the investigation team shall make recommendations for appropriate disciplinary or corrective action as it may deem fit. Any disciplinary or corrective action initiated against the subject, as a result of the investigation pursuant to this policy, shall adhere to the applicable disciplinary procedures established by the company,” the guidelines read.
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