FCA Extends Anti-Harassment Rules to 37,000 Financial Firms, Including CFD Brokers

Britain’s
financial watchdog will extend rules covering workplace bullying and harassment
to tens of thousands of regulated firms, including FX and CFD brokerages, bringing
them in line with standards already applied to banks.

The UK Financial Regulator
Extends Anti-Bullying Rules to 37,000 Firms

The
Financial Conduct Authority (FCA) said today (Wednesday) it will apply the same
misconduct rules to approximately 37,000 non-banking financial firms starting
September 1, 2026. Banks have operated under these stricter standards, but
other regulated companies like insurance firms, investment managers and companies
offering retail trading services previously faced less clear guidance on when
workplace harassment constitutes a regulatory breach.

The move
comes after the FCA received widespread backing from the industry during a
consultation process. The regulator said 80% of respondents supported the
approach, including 90% of trade bodies and 80% of authorized firms.

Sarah Pritchard, FCA Executive Director for Supervision

“Too
often when we see problems in the market, there are cultural failings in
firms,” said Sarah Pritchard, the FCA’s deputy chief executive. “Behavior
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 .”

This is a
continuation of efforts that
began early last year
, when the FCA sent misconduct surveys to financial
institutions, addressing issues such as sexism and harassment.

You may also like: “Decreasing Regulatory Burden is a Focus” in Market Overhaul, Says FCA’s Holland

New Misconduct Standards

The new
framework will require firms to share details of serious, substantiated
misconduct cases through regulatory references when employees move between
companies. This mirrors existing requirements for financial misconduct and aims
to prevent problematic individuals from simply switching firms to avoid
consequences.

The FCA is
simultaneously consulting on additional guidance to help firms implement the
rules consistently. The draft guidance addresses how companies should evaluate
non-financial misconduct when determining if someone is suitable to work in
financial services, including considerations around social media use and
private behavior.

However,
the regulator stressed it won’t duplicate existing legal requirements under
equality legislation or recent rules requiring employers to prevent sexual
harassment in the workplace.

The FCA Awaits Your
Comment

The
consultation on the guidance remains open until September 10, 2025. The FCA
said it will only proceed with the additional guidance if there’s clear
industry support.

The FCA
estimates the combined cost of implementing the rule and guidance at £75
million initially, with £40 million in ongoing annual expenses across the
industry.

The
regulator has been examining workplace culture in financial services following
high-profile cases of misconduct and pressure from lawmakers. A Treasury Select
Committee inquiry into sexism in the City highlighted the need for stronger
regulatory oversight of non-financial misconduct.

Britain’s
financial watchdog will extend rules covering workplace bullying and harassment
to tens of thousands of regulated firms, including FX and CFD brokerages, bringing
them in line with standards already applied to banks.

The UK Financial Regulator
Extends Anti-Bullying Rules to 37,000 Firms

The
Financial Conduct Authority (FCA) said today (Wednesday) it will apply the same
misconduct rules to approximately 37,000 non-banking financial firms starting
September 1, 2026. Banks have operated under these stricter standards, but
other regulated companies like insurance firms, investment managers and companies
offering retail trading services previously faced less clear guidance on when
workplace harassment constitutes a regulatory breach.

The move
comes after the FCA received widespread backing from the industry during a
consultation process. The regulator said 80% of respondents supported the
approach, including 90% of trade bodies and 80% of authorized firms.

Sarah Pritchard, FCA Executive Director for Supervision

“Too
often when we see problems in the market, there are cultural failings in
firms,” said Sarah Pritchard, the FCA’s deputy chief executive. “Behavior
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 .”

This is a
continuation of efforts that
began early last year
, when the FCA sent misconduct surveys to financial
institutions, addressing issues such as sexism and harassment.

You may also like: “Decreasing Regulatory Burden is a Focus” in Market Overhaul, Says FCA’s Holland

New Misconduct Standards

The new
framework will require firms to share details of serious, substantiated
misconduct cases through regulatory references when employees move between
companies. This mirrors existing requirements for financial misconduct and aims
to prevent problematic individuals from simply switching firms to avoid
consequences.

The FCA is
simultaneously consulting on additional guidance to help firms implement the
rules consistently. The draft guidance addresses how companies should evaluate
non-financial misconduct when determining if someone is suitable to work in
financial services, including considerations around social media use and
private behavior.

However,
the regulator stressed it won’t duplicate existing legal requirements under
equality legislation or recent rules requiring employers to prevent sexual
harassment in the workplace.

The FCA Awaits Your
Comment

The
consultation on the guidance remains open until September 10, 2025. The FCA
said it will only proceed with the additional guidance if there’s clear
industry support.

The FCA
estimates the combined cost of implementing the rule and guidance at £75
million initially, with £40 million in ongoing annual expenses across the
industry.

The
regulator has been examining workplace culture in financial services following
high-profile cases of misconduct and pressure from lawmakers. A Treasury Select
Committee inquiry into sexism in the City highlighted the need for stronger
regulatory oversight of non-financial misconduct.

This post is originally published on FINANCEMAGNATES.

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