Firms should take steps now as FCA publishes new non-financial misconduct rules

As the FCA publishes new regulation on bullying and harassment in financial services firms, RSM UK says firms should take steps now to ensure compliance and review workplace culture ahead of the updated rules taking effect from September 1 2026.

Erin Sims, financial services senior analyst, RSM UK said: “Changing the culture of a firm takes significant time and effort, there is no short-term fix, so now is the ideal time for firms to start reviewing practices in line with the rules. The proposed expansion of the Code of Conduct and the Fit and Proper Test to explicitly address serious non-financial misconduct, including bullying, harassment and violence provides much-needed clarity and consistency for non-banking firms that previously operated under a narrower interpretation of regulatory expectations.

“While implementation and ongoing compliance costs may be significant, the long-term benefits, such as improved workplace culture and reduced reputational risk, are likely to outweigh these burdens. The FCA has made it clear that non-financial misconduct is a key indicator of a toxic culture, and firms must take proactive steps to address it.”

Firms should view this regulatory shift as a strategic opportunity to reinforce workplace culture and governance in anticipation of the rules.

Erin Sims concludes: “Firms that go beyond compliance and actively champion positive workplace cultures will not only meet regulatory expectations but also position themselves as employers of choice in a competitive talent market.”

authors:erin-sims