Financial watchdog enforces new rules on bullying in the industry
- The Financial Conduct Authority expanded its regulations on bullying and harassment to include more than just banks.
- The new rules are set to come into force for about 37,000 firms in September 2026.
- The FCA aims to foster a culture of accountability and trust within the financial services sector.
In the United Kingdom, the Financial Conduct Authority (FCA) announced an expansion of its rules regarding bullying, harassment, and violence to include a wider range of financial services firms. This decision was confirmed on Wednesday, with the new regulations set to take effect in September 2026, impacting approximately 37,000 additional regulated firms. The regulator aims to establish clearer guidelines surrounding non-financial misconduct and promote firm-wide accountability across the sector. It was previously ambiguous when behaviors such as bullying would be deemed a breach of conduct regulations, especially outside traditional banking institutions. The FCA's new measures are part of its broader efforts to strengthen the culture within financial firms, as noted by its deputy chief executive, Sarah Pritchard. Pritchard highlighted that issues like unchallenged bullying can be indicative of deeper cultural problems within organizations, suggesting that such behaviors pose risks to effective decision-making and risk management. By aligning the conduct rules among banks and non-banking firms, the FCA seeks to cultivate a safer and more accountable working environment. The new regulations stipulate that serious and substantiated incidents of poor personal behavior must be reported through regulatory references, similar to protocols already in place for cases of financial misconduct. This initiative aims to prevent individuals from escaping consequences by switching firms, thereby improving overall compliance within the industry. Furthermore, the FCA is actively engaging stakeholders for feedback on additional guidance to help implement these changes effectively as part of a current consultation period, which will end on September 10. While the FCA is open to stakeholder input, it has chosen not to pursue guidance that may be redundant or unnecessary for achieving its objectives. Moreover, the authority has made it clear that it does not intend to replicate existing legal obligations under equality laws, including recent statutory duties to protect employees from sexual harassment. This indicates a focused and strategic approach towards enhancing workplace culture in financial services without overstepping legal boundaries or complicating the regulatory landscape.