UK financial watchdog expands bullying rules to 37,000 City firms - Financial sector

The UK’s fiscal watchdog is expanding bullying and harassment rules to much than 37,000 City firms, successful an effort to ace down connected “rolling atrocious apples” who debar consequences by hopping from steadfast to firm.

It means that “serious, substantiated cases of mediocre idiosyncratic behaviour” by elder managers astatine a scope of firms including hedge funds, insurers and pension firms volition person to beryllium reported to the Financial Conduct Authority (FCA), arsenic good arsenic aboriginal employers who are assessing whether caller hires are acceptable and due for the job.

Previously, lone banks were required to study atrocious behaviour to the watchdog. The rules volition present use to tens of thousands of different firms crossed the City that are bound by the alleged elder managers and certification authorities (SM&CR) that is meant to clasp elder bosses accountable for wrongdoing astatine their firms.

The regulator said the expanded rules would assistance “prevent ‘rolling atrocious apples’ – radical moving from steadfast to steadfast without due enactment being taken oregon without past superior non-financial misconduct being disclosed”.

Sarah Pritchard, the FCA’s lawman main executive, said: “Too often erstwhile we spot problems successful the market, determination are taste failings successful firms. Behaviour similar bullying oregon harassment going unchallenged is 1 of the reddest flags – a civilization wherever this occurs tin rise questions astir a firm’s decision-making and hazard management.

“Our caller rules volition assistance thrust consistency crossed manufacture and enactment the immense bulk of firms that privation to bash the close happening to deepen spot successful fiscal services.”

The expanded rules connected non-financial misconduct, which besides screen racism, intersexual harassment and unit and intimidation, will travel into unit connected 1 September 2026. However, they volition not use to payments and e-money firms, regulated concern exchanges oregon recognition ratings agencies, nary of which are taxable to SM&CR rules.

The FCA precocious won a tribunal situation brought by the erstwhile Barclays brag Jes Staley, with judges upholding a beingness prohibition against the erstwhile main enforcement for misleading the regulator implicit the quality of his narration with the convicted kid intersexual maltreatment offender Jeffrey Epstein and their past constituent of contact.

The caller rules travel contempt the FCA and chap regulators facing mounting unit from the authorities to slash reddish portion for businesses.