City watchdog extends rules on bullying and harassment across financial sector

Yahoo

19 hours ago

The city watchdog has extended rules on bullying, harassment and violence across the financial services sector.
The Financial Conduct Authority (FCA) confirmed on Wednesday that serious incidents qualify as misconduct under its rules.
Previously it was often unclear when this type of behaviour would amount to a breach of conduct rules in financial firms other than banks.
The FCA said the rules will come into force for about 37,000 more regulated firms from September 2026.
By aligning conduct rules in banks and non-banks, the watchdog said it wants to give companies confidence to take robust action as well as deepen trust and create consistency across the financial sector.
Sarah Pritchard, the FCA's deputy chief executive, said: 'Too often when we see problems in the market, there are cultural failings in firms.
'Behaviour like bullying or harassment going unchallenged is one of the reddest flags, a culture where this occurs can raise questions about a firm's decision-making and risk-management.
'Our new rules will help drive consistency across industry and support the vast majority of firms that want to do the right thing to deepen trust in financial services.'
The watchdog said any serious and substantiated cases of poor personal behaviour must be shared through regulatory references, just as cases of financial misconduct currently are.
The aim is to make it more difficult for individuals to avoid consequences by moving from firm to firm, it added.
The FCA is now asking stakeholders whether further guidance would be helpful and proportionate as they implement the rule change as part of a consultation open until September 10.
The watchdog said it has already taken on board feedback on its draft guidance, which covers how firms should consider non-financial misconduct when assessing whether an individual is fit and proper to work in financial services.
This includes how firms should consider use of social media and the relevance of behaviour in private and personal life.
But the FCA said it has already decided not to proceed with guidance which is not necessary to achieve its aims.
The watchdog added that it is also not seeking to duplicate existing legal obligations on firms under equality laws, as well as the recent preventative duty to protect workers from sexual harassment.