The FCA's new non-financial misconduct (NFM) rules and guidance are now in force, marking a significant shift in regulatory expectations across the financial services sector. Serious workplace misconduct, including bullying, harassment and violence, can now have direct implications for Conduct Rule compliance, fitness and propriety assessments, and regulatory references.
The changes also place greater emphasis on the role of senior leaders. The FCA's guidance addresses the "reasonable steps" expected of managers, reinforcing the need for Senior Managers and other leaders to take a proactive approach to identifying, addressing and preventing non-financial misconduct within their teams and organisations.
For regulated firms, now is the time to review policies, investigation procedures, fit and proper assessment processes, regulatory reference practices and management training to ensure they remain fit for purpose.
If you work in financial services and would like advice on the new requirements, support with investigations, policy updates, governance arrangements or bespoke training for HR, Legal, Compliance or management teams, please feel free to get in touch.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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