U.K. extends bullying and harassment rules to 37,000 financial services firms

Serious bullying and harassment count as misconduct in regulated financial services firms, per a July 1 clarification by the U.K. Financial Conduct Authority, which said non-financial misconduct rules now applied only to banks will extend to 37,000 more firms starting September 1, 2026.

This is a significant development in the FCA’s ongoing campaign to make financial services firms more accountable for non-financial misconduct. This is a broad term, but in a survey conducted last autumn and published on October 25, 2024, the regulator specifically questioned firms about incidents of violence or intimidation, possession or use of illegal drugs, discrimination, bullying and sexual harassment, although it also enabled them to add further examples and these included misuse of expenses or gifts, alcoholic intoxication and data protection breaches. More than half of financial services employees have witnessed or experienced workplace misconduct.