Workplace bullying and harassment will constitute regulatory misconduct across the financial industry under new rules adopted by the U.K.’s Financial Conduct Authority (FCA).
The rules, which take effect Sept. 1, 2026, establish that bullying and harassment at financial firms amount to breaches of conduct regulations. The FCA said the rules aim to clarify when these behaviours violate regulatory standards.
“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,” said Sarah Pritchard, deputy chief executive at the FCA, in a release.
“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,” she added.
Under the rules, “serious, substantiated cases of poor personal behaviour will also need to be shared … in the same way financial misconduct currently is, making it harder for individuals to avoid consequences by moving from firm to firm,” the FCA noted.
At the same time, the FCA is consulting on proposed guidance to help firms implement the rules.
“The draft guidance covers how firms should consider non-financial misconduct when assessing whether an individual is fit and proper to work in financial services.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 regulator said.
The consultation on the proposed guidance is open until Sept. 10.