PIMFA has published new guidance to help member firms navigate the Financial Conduct Authority's (FCA) updated handbook rules on non-financial misconduct.

The guide, which has been developed in partnership with Chartered Insurance Institute (CII), the Chartered Institute for Securities & Investment (CISI) and law firm Clyde & Co., has been launched ahead of the new rules which come into force in September.

The FCA has formally set out its expectations of both firms and regulated individuals in relation to non-financial misconduct, covering a range of behaviour, including harassment, bullying, discrimination, victimisation and the abuse of drugs and alcohol in the workplace.

The regulator has stated that these unhealthy cultures that these behaviours create can facilitate wider wrongdoing, harming both markets and consumers.

PIMFA has developed the guidance, alongside its partners, to support members in understanding and applying the new rules, which have not been designed as a prescriptive checklist.

The new guidance addressed the need for firms to exercise judgement on how to best act in particular circumstances, such as operating in greys areas such as the boundary between work and private life, or the relevance of social media activity.

The guide also explores the legal and regulatory landscape, including how the FCA’s rules interact under the Equality Act 2010.

To help firms apply the rules in practice, the guide includes a series of worked scenarios covering situations from social media posts and after-work events through to allegations involving senior staff, alongside a checklist of actions for firms to consider.

CEO at PIMFA, Liz Field, stated: "In order to create a healthy organisational culture, it takes a values-driven commitment from senior leadership to build trust, create psychological safety and foster an environment in which people can perform and thrive. That is not always easy, and balancing the demands of running a business with taking your people with you is a daily consideration for leaders.

"This guidance gives firms practical support in meeting the FCA's expectations and, more importantly, in building the kind of workplace cultures our industry should be known for. Promoting the highest standards of conduct, standards with teeth, will help firms develop and sustain healthy, inclusive cultures in a sector that carries significant financial and personal responsibilities."

CEO at CISI, Tracy Vegro OBE, added: "Trust in financial services depends not only on technical competence, but also on the standards of behaviour people experience every day. The FCA’s rules on non-financial misconduct are an important step in reinforcing that message: poor conduct, bullying or harassment have no place in a profession built on integrity and public confidence.

"This guidance is designed to help firms apply the FCA’s expectations in practice and exercise professional judgement when difficult issues arise. That matters for consumers, for confidence and trust in UK financial services, and for showing the next generation that this is a sector where high standards matter."

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