The UK Financial Conduct Authority has finalized rules that classify serious cases of bullying, harassment, and violence in financial services as misconduct. From 1 September 2026, these rules will extend to approximately 37,000 additional regulated firms, closing a long-standing gap in conduct regulation outside the banking sector.
Previously, the application of the FCA’s conduct rules to non-financial behaviour was ambiguous in many parts of the industry. The change ensures that serious, substantiated instances of poor personal behaviour—such as bullying or harassment—must now be treated on par with financial misconduct. Firms will be expected to include such incidents in regulatory references, making it harder for individuals to move between employers without accountability.
“Too often when we see problems in the market, there are cultural failings in firms”
Sarah Pritchard, the FCA’s deputy chief executive, commented, “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 new requirement aligns with the FCA’s strategic aims to protect markets and consumers while also supporting competition and long-term economic growth. It will apply to FSMA firms with Part 4A permissions but not to firms such as payment and e-money institutions, regulated investment exchanges, or credit rating agencies, which fall outside the Senior Managers and Certification Regime.
While confirming the rule change, the FCA also opened a consultation on accompanying guidance. The proposed guidance outlines how firms should treat non-financial misconduct—including private behaviour and use of social media—when evaluating an individual’s fitness and propriety. The regulator is seeking feedback until 10 September 2025 and has said it will only finalize the guidance if there is clear support from the industry.
The FCA emphasized that it does not intend to duplicate existing legal obligations under the Equality Act or the newly introduced duty to prevent sexual harassment in the workplace. It also confirmed it will not proceed with draft guidance on Threshold Conditions or the SYSC rulebook.
The decision follows industry-wide consultation and builds on earlier work including sector letters, a non-financial misconduct survey, and a formal response to the Treasury Select Committee’s “Sexism in the City” inquiry.
By tying personal conduct more directly to regulatory standards, the FCA aims to reinforce a baseline of accountability and cultural integrity in firms, signaling that misconduct—financial or otherwise—will have real consequences.
