The FCA has clarified its expectations on bullying, harassment and violence, confirming that serious offences will qualify as misconduct under its rules.
Previously, it was often unclear when these types of behaviours would amount to a conduct rules breach in a firm other than a bank.
From 1st September 2026, the same rules will be extended to around 37,000 other regulated firms, increasing consistency across financial services.
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.
The FCA is also asking whether further guidance would be helpful and proportionate for firms as they implement the rule change. The draft guidance covers how firms should consider non-financial misconduct when assessing whether an individual is fit and proper to work in financial services.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 regulator is 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 10th September 2025 and the FCA says it will proceed with the guidance "if there is clear support for it".
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."
