From 1 September 2026, the FCA will treat serious bullying, harassment and violence in around 37,000 financial services firms as formal misconduct, expanding this beyond banks to other regulated firms like insurers, hedge funds and pension firms.

It means that serious, substantiated cases of poor personal conduct by senior managers will have to be reported to the FCA, as well as to future employers in the form of regulated references.

These steps are being taken to prevent perpetrators from avoiding the consequences of their actions by quietly moving from firm to firm.

Why it matters:

A toxic workplace culture erodes trust, clouds decision-making and amplifies risks. By extending these rules beyond banks, the FCA is clearly stating that non-financial misconduct threatens market integrity as much as financial misconduct, like insider trading and fraud.

Next steps:

The FCA is inviting comments on its draft guidance, including how firms should evaluate fitness and propriety and private/social media conduct, until 10 Sept 2025.

How finance firm leaders should respond:

✅Start auditing your non-financial misconduct policies, including bullying, harassment, and violence.

✅Ensure HR, compliance and management are prepared for more robust reporting and reference requirements.

✅Foster healthy cultures that actively deter misconduct, not just policies that punish it.

This marks a significant step in the FCA’s effort to embed stronger culture standards across all firms regulated under SM&CR, and deepen trust in financial services.

Read the FCA announcement here 👉  https://www.fca.org.uk/news/press-releases/fca-expectations-bullying-harassment-violence-deepen-trust-financial-services