City firms scramble to meet FCA's new bullying and harassment reporting rules
Major hedge funds, insurers and pension managers are hurriedly updating policies as the FCA prepares to enforce broader rules on non-financial misconduct next month.
The FCA is set to extend its crackdown on misconduct beyond banks to include roughly 40,000 investment firms, insurers and brokers, obliging them to report serious non-financial wrongdoing such as racism, sexual harassment and intimidation. The rule also mandates that firms share such reports with prospective employers to stop “rolling bad apples.” In response, large City institutions are fast-tracking policy reviews, staff training and the closure of pending investigations.
Jill Lorimer of Kingsley Napley notes that firms are keen to have processes finalized before the September start date, anticipating a rigorous regulatory test. Recent high-profile cases at Lloyd’s of London and the bans on former Barclays chief Jes Staley and hedge-fund boss Crispin Odey have reinforced the FCA’s resolve. An FCA spokesperson emphasized that while firms remain primarily responsible for culture, the new guidance aims to standardise industry responses.
Why it matters
The rules could reshape how financial firms handle workplace abuse, affecting thousands of employees and the sector's reputation.
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