FCA clarifies expectations on bullying, harassment and violence to deepen trust in financial services

Serious bullying and harassment in financial firms qualify as misconduct, under rules confirmed by the Financial Conduct Authority (FCA).

Previously, it was often unclear when these types of behaviours would amount to a conduct rules breach in a firm other than a bank.

On 1 September 2026, the same rules will be extended to around 37,000 other regulated firms, increasing consistency across financial services. 

There was widespread support for the FCA extending these rules in response to its previous consultation.

Serious, substantiated cases of poor personal behaviour will also need to be shared through regulatory references, in the same way financial misconduct currently is, making it harder for individuals to avoid consequences by moving from firm to firm.

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 FCA is also asking whether further guidance would be helpful and proportionate for firms as they implement the rule change. It has taken on board feedback on its previous draft guidance.

The draft guidance covers how firms should consider non-financial misconduct when assessing whether an individual is fit and proper to work in financial services.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.

The FCA has already decided not to proceed with guidance which is not necessary to achieve its aims.

It is also not seeking to duplicate existing legal obligations on firms under the Equality Act and the recent preventative duty to protect workers from sexual harassment.

The guidance is open for consultation until 10 September 2025. The FCA will only proceed with the guidance if there is clear support for it.

Notes to editors

1. Read the Consultation and Policy Statement.
2. The new rule supports the FCA's primary objectives to protect consumersand markets and promote effective competition, as well as its secondary objective to promote economic growth and competitiveness.
3. The rule will apply to FSMA firms with a Part 4A permission. It won't apply to those without a Part 4A permission, such as payments and e-money firms, regulated investment exchanges and credit ratings agencies. The Senior Managers and Certification Regime does not apply to such firms.
4. To find out more about our other work on non-financial misconduct, please read our:
   • Response to the Treasury Select Committee (TSC)'s Sexism in the City inquiry.
   • Sector portfolio letters to wholesale banks, wholesale insurers and wholesale insurance brokers.
   • Results of the FCA's non-financial misconduct survey.
5. This Consultation Paper sets out the response to the feedback received and final rules on the non-financial misconduct (NFM) elements of the September 2023 Diversity and Inclusion Consultation Paper (CP23/20 PDF).
6. We have decided not to proceed with guidance on Threshold Conditions and the Senior Management Arrangements, Systems and Controls (SYSC) sourcebooks.