The UK Financial Conduct Authority has published final guidance to help financial firms, including retail CFD brokers, address bullying, harassment, and violence. The regulator said firms had asked for additional support after it changed its rules in July.

Rule Changes Clarify Non Financial Misconduct

The rule changes set clearer expectations for how firms should handle non-financial misconduct. They also aligned requirements for banks and non-banks. The FCA said the aim was to give firms the confidence to act, improve consistency, and clarify when such behaviour becomes a breach.

• WhatsApp Scams Target Retail Investors, Imitate Saxo and JP Morgan
• Finalto Secures UAE Category 5 Licence as Conor Canny Becomes CEO MENA
• Retail Investors in France Get Access to Crypto ETNs Amid Tokenized SME Trading

James Alleyne, a partner at Kingsley Napley LLP, said the FCA “has long signalled its intention to raise standards.” He added that firms may welcome clarity on fitness assessments and the boundary “between the private and professional lives of staff.”

He said it remains uncertain whether the FCA will enforce directly on misconduct or rely on firms, noting that “only time will tell.”

Consultation Support Confirms Industry Agreement

According to the FCA, 95% of consultation respondents supported publishing detailed guidance. The document outlines how firms can apply minimum behaviour standards and what they should consider when assessing whether an individual is fit and proper.

Firms’ Accountability Clarified, Trivial Allegations Excluded

The FCA made several adjustments after feedback, including new examples and flow charts, closer alignment with employment law, and clarification that accountability depends on a manager’s knowledge and authority. The guidance also states that firms are not expected to investigate trivial allegations or breach privacy rules.

Implementation Set for First September Next Year

The regulator said some firms asked for more detailed examples but noted that it cannot cover every scenario.

It said the primary responsibility for preventing and managing misconduct remains with firms. The new rules and guidance will take effect on the first of September next year.

Francesca Lopez, senior associate in the Employment team at Kingsley Napley, said firms have until next year to prepare.

She explained that there is time to update policies on bullying, discrimination, and harassment and to ensure whistleblowing channels work.

She said training will be important so staff understand unacceptable behaviour and managers can identify serious issues. She also said regulatory attention may have wider “reputation implications.”