FCA Expands Oversight Of Non-Financial Misconduct To 37,000 Firms

Britain’s Financial Conduct Authority (FCA) announced it will extend rules covering non-financial misconduct, such as bullying and discrimination, to around 37,000 regulated firms beyond banking. Starting September 1, 2026, the rules will apply to hedge funds, asset managers, and consumer credit firms.

The move follows a study that found a 60% rise in reports of misconduct between 2020 and 2023. The FCA will require firms to report serious personal conduct issues, including bullying, harassment, and related actions, to prevent individuals from avoiding scrutiny by changing employers. Firms must notify the FCA of written warnings, dismissals, or changes in pay tied to such behaviour. The regulator said these rules aim to improve industry-wide consistency and promote accountability in financial services. A consultation process is underway.