Enforcement or Control Measures Implemented
The Financial Conduct Authority (FCA) is stepping up its efforts to combat bullying and harassment within the financial sector. In a move towards stricter regulation, the FCA has been engaging with City firms on proposed measures to eradicate non-financial misconduct.
Under the Senior Managers and Certification Regime (SMCR), the FCA now views bullying, sexual harassment, and discrimination as serious offenses. This means that senior managers and certified staff could face personal accountability if they fail to address or prevent such behaviors within their teams. The FCA considers non-financial misconduct not only unethical but also detrimental to the sector's integrity and reputation.
Moreover, firms are expected to evaluate their staff's fitness and propriety to carry out their roles. Instances of bullying or harassment may impact these assessments, possibly leading to individuals being barred from working in finance.
The FCA's stance is evident in its recent enforcement actions. For instance, Crispin Odey was fined £1.8 million and barred for life due to alleged interference with investigations into sexual harassment and assault allegations. This and other similar cases demonstrate the FCA's commitment to prioritizing personal conduct and integrity along with financial regulation.
Financial firms are required to have robust internal policies to prevent and manage bullying, harassment, and discrimination. Employees can report such concerns confidentially via the FCA’s whistleblowing procedures if internal mechanisms fail or if there is wrongdoing within the workplace. Breaches of conduct policies, including bullying or harassment, must be reported to relevant teams for further investigation and potential disciplinary action, which could lead to dismissal in severe cases.
The FCA's increased focus on non-financial misconduct is part of a broader initiative to uphold high standards of personal conduct and integrity across the financial sector. Those who fail to meet these standards may face serious consequences, including fines, bans, and impact on their "fit and proper" assessments.
Businesses within the financial sector, under the Senior Managers and Certification Regime (SMCR), are expected to uphold high standards of personal conduct and integrity, as failures in this regard may lead to fines and bans, or affect their 'fit and proper' assessments. The Financial Conduct Authority (FCA) is taking a more active role in regulating non-financial misconduct such as bullying and harassment, and has made it clear that these behaviors will be treated as serious offenses, with senior managers and certified staff potentially facing personal accountability if they fail to address or prevent such actions.
