Serious bullying and harassment in finance workplaces will qualify as misconduct, the Financial Conduct Authority confirms.
The City regulator says that previously it was “often unclear” when this behaviour amounted to conduct breaches in a firm other than a bank.
But it now says from 1 September next year, the same rules that apply to banks will be extended to around 37,000 other regulated firms, “increasing consistency across financial services”.
The watchdog adds: “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 watchdog says there was “widespread support” for extending these rules in response to a previous consultation it carried out in September 2023.
The FCA is now also asking whether further guidance would be “helpful and proportionate” for firms as they implement this rule change.
The guidance is open for consultation until 10 September, with the watchdog adding it “will only proceed with the guidance if there is clear support for it”.
It adds that it is not seeking to duplicate existing legal obligations on firms under the Equality Act and recent preventative duty to protect workers from sexual harassment.
Financial Conduct Authority deputy chief executive Sarah Pritchard says: “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.”
