Latest news with #SarahPritchard
The Guardian
5 hours ago
- Business
- The Guardian
UK financial watchdog expands bullying rules to 37,000 City firms
The UK's financial watchdog is expanding bullying and harassment rules to more than 37,000 City firms, in an effort to crack down on 'rolling bad apples' who avoid consequences by hopping from firm to firm. It means that 'serious, substantiated cases of poor personal behaviour' by senior managers at a range of firms including hedge funds, insurers and pension firms will have to be reported to the Financial Conduct Authority (FCA), as well as future employers who are assessing whether new hires are fit and proper for the job. Previously, only banks were required to report bad behaviour to the watchdog. The rules will now apply to tens of thousands of other firms across the City that are bound by the so-called senior managers and certification regime (SM&CR) that is meant to hold senior bosses accountable for wrongdoing at their firms. The regulator said the expanded rules would help 'prevent 'rolling bad apples' – people moving from firm to firm without appropriate action being taken or without past serious non-financial misconduct being disclosed'. 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 expanded rules on non-financial misconduct, which also cover racism, sexual harassment and violence and intimidation, will come into force on 1 September 2026. However, they will not apply to payments and e-money firms, regulated investment exchanges or credit ratings agencies, none of which are subject to SM&CR rules. The FCA recently won a tribunal challenge brought by the former Barclays boss Jes Staley, with judges upholding a lifetime ban against the former chief executive for misleading the regulator over the nature of his relationship with the convicted child sex offender Jeffrey Epstein and their last point of contact. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The new rules come despite the FCA and fellow regulators facing mounting pressure from the government to slash red tape for businesses.
Yahoo
11 hours ago
- Business
- Yahoo
City watchdog extends rules on bullying and harassment across financial sector
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.
The Independent
11 hours ago
- Business
- The Independent
City watchdog extends rules on bullying and harassment across financial sector
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.
Finextra
3 days ago
- Business
- Finextra
FCA concludes financial advice TechSprint
Millions of young adults today are faced with mounting debt, shifting job markets, and the challenge of saving in uncertain times. 0 This article delivers financial advice for millennials designed to tackle these pressures head-on — from budgeting hacks and debt relief to investing basics and retirement planning. The FCA's proposals would allow firms to offer a new type of help called 'targeted support' and make suggestions to groups of consumers with common characteristics. These could include people who may be currently drawing down on their pension unsustainably, not saving enough for retirement or who have excess cash sitting in a current account. The changes, which have inbuilt protections for consumers, also support growth by enabling increased investment and innovation. Sarah Pritchard, Deputy Chief Executive of the FCA, said, 'We want to help consumers navigate their financial lives and plan for the long term. Some of the most difficult financial decisions we face are how to save, invest and prepare for a comfortable retirement. 'These once-in-a-generation reforms will help people navigate their financial lives and give them greater confidence to invest. This is a win-win for consumers and firms alike.' These reforms should set the framework for the next 20-30 years, to support consumers now as well as future generations. The FCA wants to see a thriving and trusted market for full financial advice, simplified advice, targeted support and guidance. Alongside today's proposals for targeted support, the FCA has set out plans to reform the framework for simplified advice. Consumer access to a choice of guidance, targeted support, simplified advice and full financial advice should help reduce the so-called 'advice gap'. This supports our ambition that consumers should have access to the help and guidance that they need, at a cost they can afford, when they need it, to make informed decisions about their financial lives. This advice gap is stark. Just 9% of adults received financial advice about their pensions or investments in the previous 12 months, according to the FCA's latest Financial Lives survey (FLS 2024). Another essential element of financial advice for millennials is learning to automate savings and explore beginner-friendly investment platforms early. Of those who did not receive financial advice, but hold £10,000 or more in cash savings, 24% said they don't invest because they don't know enough about it, 12% because they feel overwhelmed by the number of options available, and 8% said they would need more support before they invest. There are about 7 million adults in the UK with £10,000 or more in cash savings who may be missing out on the benefits of investing throughout their lives. The FCA has worked in a smarter way to carry out this work, running its very first 6 week policy sprint, where firms designed consumer journeys to help design the rules in the consultation, with support from consumer representatives and other members of the regulatory family. Detailed consumer testing has also been completed, published alongside the consultation. The aim of this detailed sprint, and consumer testing, has been to help then accelerate the period for consultation, which is now open for 8 weeks. The FCA is also working with the government to help resolve issues that might prevent firms communicating with consumers, with issues having been identified early through the policy sprint. The FCA committed to support growth in its strategy. These reforms are among almost 50 initiatives the FCA set out in a letter to the Prime Minister in January 2025, which the FCA is delivering against this year. By following this financial advice for millennials, young adults can build a strong money foundation—whether it's paying down debt, boosting savings, or planning for retirement.
FF News
3 days ago
- Business
- FF News
Once-in-a-Generation Advice Changes to Help Millions Navigate Their Financial Lives
Millions more people could get help navigating their financial lives with support on pensions and investments, under proposals announced today by the Financial Conduct Authority (FCA). The FCA's proposals would allow firms to offer a new type of help called 'targeted support' and make suggestions to groups of consumers with common characteristics. These could include people who may be currently drawing down on their pension unsustainably, not saving enough for retirement or who have excess cash sitting in a current account. The changes, which have inbuilt protections for consumers, also support growth by enabling increased investment and innovation. Sarah Pritchard, Deputy Chief Executive of the FCA, said, 'We want to help consumers navigate their financial lives and plan for the long term. Some of the most difficult financial decisions we face are how to save, invest and prepare for a comfortable retirement. 'These once-in-a-generation reforms will help people navigate their financial lives and give them greater confidence to invest. This is a win-win for consumers and firms alike.' These reforms should set the framework for the next 20-30 years, to support consumers now as well as future generations. The FCA wants to see a thriving and trusted market for full financial advice, simplified advice, targeted support and guidance. Alongside today's proposals for targeted support, the FCA has set out plans to reform the framework for simplified advice. Consumer access to a choice of guidance, targeted support, simplified advice and full financial advice should help reduce the so-called 'advice gap'. This supports our ambition that consumers should have access to the help and guidance that they need, at a cost they can afford, when they need it, to make informed decisions about their financial lives. This advice gap is stark. Just 9% of adults received financial advice about their pensions or investments in the previous 12 months, according to the FCA's latest Financial Lives survey (FLS 2024). Of those who did not receive financial advice, but hold £10,000 or more in cash savings, 24% said they don't invest because they don't know enough about it, 12% because they feel overwhelmed by the number of options available, and 8% said they would need more support before they invest. There are about 7 million adults in the UK with £10,000 or more in cash savings who may be missing out on the benefits of investing throughout their lives. The FCA has worked in a smarter way to carry out this work, running its very first 6 week policy sprint, where firms designed consumer journeys to help design the rules in the consultation, with support from consumer representatives and other members of the regulatory family. Detailed consumer testing has also been completed, published alongside the consultation. The aim of this detailed sprint, and consumer testing, has been to help then accelerate the period for consultation, which is now open for 8 weeks. The FCA is also working with the government to help resolve issues that might prevent firms communicating with consumers, with issues having been identified early through the policy sprint. The FCA committed to support growth in its strategy. These reforms are among almost 50 initiatives the FCA set out in a letter to the Prime Minister in January 2025, which the FCA is delivering against this year.
