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The Financial Conduct Authority (FCA) has confirmed that serious bullying, harassment and violence in financial firms will qualify as misconduct under its rules, as part of measures to strengthen trust in the sector.
The regulator said the rules, which currently apply mainly to banks, would be extended on 1 September 2026 to about 37,000 other regulated firms. The move is intended to create consistency across the financial services industry.
Previously, it was unclear when such behaviour would breach conduct rules outside of banking. Firms will also be required to record substantiated cases of poor personal behaviour in regulatory references, making it harder for individuals to evade consequences by moving between employers.
The FCA is also consulting on draft guidance that would help firms implement the rule change. This includes how to assess whether an individual is fit and proper to work in financial services, and how to take account of behaviour on social media or in private life.
The regulator has decided not to issue guidance that is unnecessary to meet its objectives and said it does not intend to duplicate existing legal obligations under the Equality Act or the new duty to protect workers from sexual harassment.
The consultation on the draft guidance will run until 10 September 2025, with the FCA saying it will proceed with the guidance only if there is clear support for it.
Sarah Pritchard, deputy chief executive of the FCA, 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.”
