Bullying, harassment and violence set to be conduct issues under new FCA Rule

The Financial Conduct Authority (the "FCA") recently published its Policy Statement and Consultation on non‑financial misconduct ("CP25/18"). The FCA confirms in CP25/18 that its rules are being updated to better capture non‑financial misconduct ("NFM") in recognition that serious misconduct such as bullying, harassment and violence is a matter of regulatory concern. This already applied to banks, but from 1 September 2026 will also apply to non-banking firms.

What are the aims of the new NFM rule?

The FCA sets out that its aims in the new NFM rule are to:

• give firms confidence to take robust action against serious misconduct;
• drive consistency across the financial sector; and
• make it clearer when NFM is a breach of an FCA rule.

This is part of the FCA's Strategy for 2025 – 2030 to promote healthy and inclusive workplace cultures and to deepen trust in financial services.

What does the new NFM rule cover?

The new rule in the FCA Code of Conduct ("COCON") covers the following NFM:

1. conduct that has the purpose or effect of
   1. violating the individual's dignity; or
   2. creating an intimidating, hostile, degrading, humiliating or offensive environment for the individual; or
2. conduct that is violent to the individual.

The "individual" in receipt of the unwanted conduct is not limited to direct colleagues but could also include other group members or personnel that are providing services to the firm.

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