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(Sharecast News) - Britain's financial watchdog has extended rules on serious bullying and harassment in the financial services sector.
The Financial Conduct Authority said serious incidents would now qualify as misconduct.
Previously, it was often unclear when these types of behaviours would amount to a conduct rules breach in a firm other than banks, the FCA said in a statement. Its decision means that regulations will be extended to around 37,000 other firms from September 2026.
Serious, substantiated cases of poor personal behaviour will also need to be shared through regulatory references, in the same way as financial misconduct, making it harder for individuals to avoid consequences by moving from firm to firm, it added.
"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 FCA deputy chief executive Sarah Pritchard.
"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."
The FCA is also asking the industry whether further guidance would be helpful and proportionate for firms as they implement the rule change. Draft guidance covers how they should consider non-financial misconduct when assessing whether an individual is fit and proper to work in financial services, including considering use of social media and the relevance of behaviour in private and personal life.
The guidance is open for consultation until September 10. The FCA said it will only proceed with the guidance if there is clear support for it.
Reporting by Frank Prenesti for Sharecast.com
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