FCA details expectations on bullying and harassment in financial services

The Financial Conduct Authority (FCA) has clarified its rulings on bullying, harassment and violence as part of an effort to improve trust in the financial services sector.

The regulator stated that serious bullying and harassment in financial firms would qualify as misconduct.

Previously, the FCA had suggested it was unclear when these types of behaviours would amount to a conduct rules breach in a firm, other than a bank.

From 1 September 2026, however, the same rules will be extended to around 37,000 other regulated firms, which the regulator said would increase consistency across financial services.

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 FCA said there was widespread support for it to extend these rules in response to a previous consultation.

“Too often when we see problems in the market, there are cultural failings in firms,” the FCA's deputy chief executive, Sarah Pritchard, said.

“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.”

However, the FCA’s move has not been warmly welcomed by all. Partner in the Financial Services Regulatory team at Kingsley Napley LLP, James Alleyne, said it was “disappointing” that the FCA was taking another consultation on its expectations around bullying and misconduct.

“Given the FCA’s bold public stance on non-financial misconduct before now, it is disappointing that it is undertaking yet another consultation, has watered down its previous proposals and is still yet to publish detailed guidance,” Alleyene said.

“Given that new rules are coming in from 2026, this will be of concern for many in the regulated community. It is hard to conclude that this is anything other than the regulator putting economic growth before the need for regulatory certainty.”

The FCA’s guidance will remain open for consultation until 10 September.



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