The Financial Conduct Authority has finalized new rules regarding non-financial misconduct that take effect on 1 September. These regulations apply to all firms operating under the Senior Managers and Certification Regime, expanding requirements beyond banks to include a broader range of financial organizations.
Firms must now implement measures to prevent bullying, harassment, and violence against colleagues. These obligations apply even when the conduct does not have a direct link to specific regulated financial activities. The regulator released handbook guidance in PS25/23 to help management teams adjust their internal policies before the deadline.
This shift occurs alongside other legislative updates, such as changes to non-disclosure agreements and new protections for whistleblowers in cases of sexual harassment. Employers must review their current governance, training, and investigation processes to maintain compliance with these evolving standards.
Legal teams and HR departments should treat these updates as a priority for their September preparation. Converging regulatory and employment law requirements necessitate a clear look at how misconduct is addressed within the workplace environment.