The Financial Conduct Authority (FCA) has announced new rules that will count serious bullying and harassment as misconduct at financial firms.

The rules, which already apply to banks, will be extended to around 37,000 other regulated firms from 1 September 2026.

Currently, it is often unclear to financial services providers whether this type of behaviour would amount to a conduct rules breach for non-banking firms.

Under the new rules, serious, substantiated cases of poor personal behaviour must also be shared through regulatory references, in the same way financial misconduct currently is. The regulator said that this would make it harder for individuals to avoid consequences by moving from firm to firm.

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

She added that the new rules will help to “drive consistency” across industry.

The Authority is also asking whether further guidance would be helpful and proportionate for firms as they implement the rule change.

The draft guidance covers how firms should consider non-financial misconduct when assessing whether an individual is fit and proper to work in financial services.

This would include how firms should consider use of social media and the relevance of behaviour in private and personal life.

The guidance, which will only proceed with clear support from industry, is open for consultation until 10 September 2025.

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