Addressing Workplace Misconduct in the Financial Sector
The U.K.’s Financial Conduct Authority has recently clarified that serious bullying, harassment, and violence in the workplace qualify as misconduct at financial firms, behavior that could ultimately lead to a ban from the sector.
City firms reported a 72% surge in non-financial misconduct claims over the three years to October. This increase followed several high-profile scandals, including sexual assault allegations against hedge fund manager Crispin Odey and ex-Barclays’ boss Jes Staley’s connections to disgraced financier Jeffrey Epstein.
The FCA, known for targeting rogue traders and financial wrongdoing, is now addressing the prevalence of toxic behavior in the industry. There has been a lack of clarity in the past regarding whether such behavior would constitute a breach of conduct in firms beyond banks.
“Cultural failings in firms” have allowed bullying and harassment to persist unchecked, noted Sarah Pritchard, the FCA’s deputy chief executive. The rules will be expanded in September 2026 to cover approximately 37,000 regulated firms, aiming to promote trust in financial services.
The FCA’s review from last year revealed that despite pressure on firms to report poor behavior, little had changed in workplace culture. Bullying and harassment were among the most commonly reported types of misconduct.
According to Christine Braamskamp, a lawyer at Jenner & Block in London, the new rules on non-financial misconduct place a significant burden on senior managers to address such behavior in a climate where cancel culture is prevalent.
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For further insights into the impact of Jeffrey Epstein on the banking industry, you can read the full article here.
