The Abu Dhabi Global Market free zone (ADGM) is seeking public consultation on its proposals for a whistleblowing framework, which will lead to the introduction of Whistleblower Protections Regulations (the Regulations) and amendments to the Employment Regulations. These proposals will impact all companies operating in the ADGM and will require companies to implement a whistleblowing framework through which disclosures can be made either internally or externally, which will be protected under the legislation.
The ADGM published Guiding Principles on Whistleblowing in December 2022 that, whilst non-binding, were designed to assist entities and individuals in the ADGM in establishing whistleblowing frameworks and ensure that potential whistleblowers were encouraged to speak up and were fairly treated when they did so.
The ADGM is now looking to implement statutory measures to implement many of the principles contained in the Guiding Principles and to require all companies to adopt a whistleblowing framework and provide protection for whistleblowers.
KEY PROPOSALS IN THE DRAFT LEGISLATION
The key points discussed in the public consultation paper are as follows:
WHAT DOES THIS MEAN FOR COMPANIES IN THE ADGM?
The public consultation paper makes the point that market participants in the ADGM ought to have already been on notice of the free zone’s intentions to implement a whistleblowing framework. As such, whilst the public consultation may lead to some changes in the proposed regulatory framework, it seems certain that the Regulations (and amendments to the Employment Regulations) will be implemented in some form.
In preparation for the forthcoming changes:
- Employers should consider what, if any, whistleblowing framework they already have in place and ensure that going forward a whistleblowing framework is adopted which addresses the concerns of the ADGM.
- Whilst the Registration Authority and Financial Services Regulatory Authority of the ADGM rightly point to the need for fairness, transparency and integrity in its markets, facilitated by the whistleblowing regime, some challenges remain to the way protection to whistleblowers can be promised, given the criminal laws of the UAE apply in the ADGM. In particular, the impact on the criminal sanctions relating to defamation and insult in the UAE Criminal Code must be carefully considered, and any global whistleblowing policy that a company may have should be tailored for the local market.
- Given the wide-ranging scope of the whistleblowing protection in the Regulations (as it can relate to breach of any ADGM regulations or rules or other legislation administered by an ADGM authority), it will also be important for employers to put in place a robust grievance procedure (distinct from the whistleblowing framework) to be used where employees have personal workplace concerns that would be more appropriately dealt with under a separate process.
- It is recommended (as proposed within the consultation paperwork) that companies designate a specific person or group of people to whom whistleblowing concerns should be raised in order to streamline the complaints process and ensure that any whistleblowing complaint is dealt with promptly and appropriately.
NEXT STEPS
The public consultation closes on 30 April 2024. After the ADGM has considered whether any changes are necessary to the proposed Regulations and amendments to the Employment Regulations, the consultation paper confirms that the authority will proceed to enact the proposals.
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