Serious bullying and harassment within financial advice firms will 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.
However, today (2 June) the regulator said that from 1 September 2026 the same rules will be extended to around 37,000 other regulated firms.
The FCA said there was “widespread support” for 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 as financial misconduct, making it harder for individuals to avoid consequences by moving from firm to firm.
FCA records 40% rise in complaints about non-financial misconduct | Money Marketing
FCA deputy chief executive Sarah Pritchard 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.
The draft guidance covers how firms should consider non-financial misconduct when assessing whether an individual is fit and proper to work in financial services.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 guidance is open for consultation until 10 September 2025 and the FCA said it will only proceed if there is clear support for it.
