The FCA’s new rules on non-financial misconduct

From 1 September 2026, serious workplace misconduct, particularly bullying, harassment and violence, becomes more clearly and explicitly a regulatory matter for financial services firms.

Most people working in financial services will already know that regulators have, for some time, treated workplace behaviour as a matter of governance, leadership and accountability, not simply something for HR to handle.

The more challenging question is what this means day-to-day.

In practice, that means increasing expectations around prevention as well as response, i.e.:
– recognising concerns early
– intervening appropriately
– fostering a culture where people feel able to speak up

There is also more focus on employers' responsibilities to protect staff from poor behaviour by third parties, including clients, investors and market counterparties.

While these FCA changes won't apply to every organisation, they reflect a much broader regulatory direction of travel. The SRA has also increasingly treated workplace conduct as a matter of professional standards and governance, with growing expectations around leadership, culture and accountability.

We help organisations prepare for changes like this, and our reason for doing so goes beyond regulatory compliance. Behind every one of these rules is someone who experienced something difficult at work, often for longer than anyone around them realised. Getting this right protects people, not just firms.

Here are six practical implications of the new rules:

The FCA’s new approach to non-financial misconduct

Six practical implications for financial services firms

From 1 September 2026

Swipe →

The net is clearer and bigger

Serious workplace misconduct, including bullying, harassment and violence, is now more clearly and explicitly capable of breaching the Conduct Rules across a wider range of financial services firms.

The behaviour isn’t new. The regulatory clarity is.

Management judgement matters more than ever

Managers are expected to take reasonable steps to prevent and respond to this kind of behaviour. Failing to intervene or escalate when they should have known about a problem can itself breach Conduct Rule 2.

Good judgement means:

setting the right tone
recognising when a line has been crossed
spotting patterns early
acting proportionately
having the right conversations

This isn’t just about behaviour in the office

The Conduct Rules can apply wherever there is a sufficient connection to work.

That includes:

client meetings
social events
remote working
conferences
interactions with market counterparties

Third-party behaviour matters too

The focus is no longer only on how your people behave. It’s increasingly about how well you protect them from misconduct from:

clients
investors
suppliers
market counterparties

Leadership doesn’t stop at your payroll.

Tick-box training won’t be enough

Policies and training matter, but neither replaces management capability.

People need confidence to:

create the right culture
recognise concerns
intervene effectively
have necessary conversations

Culture is a regulatory issue

Regulators are increasingly interested in whether organisations:

recognise concerns
investigate appropriately
support speaking up
act consistently
learn from mistakes

The direction of travel is clear

Alongside:

the strengthened duty to prevent sexual harassment
beefed up unfair dismissal law
increased regulatory scrutiny

...the expectations of leaders continue to rise.

The organisations that will thrive are those that equip people to recognise concerns early, make good judgement calls and respond effectively.

What to do before September

1 Review your policies and your process for escalating concerns
2 Test a real scenario with your managers and see how they respond in practice
3 Train the people expected to have these conversations to hold them with the care and confidence they deserve

1 / 9

Want to find out more?

Get in touch