Britain's financial watchdog will extend rules covering workplace bullying and harassment to tens of thousands of regulated firms, including FX and CFD brokerages, bringing them in line with standards already applied to banks.

The UK Financial Regulator Extends Anti-Bullying Rules to 37,000 Firms

The Financial Conduct Authority (FCA) said today (Wednesday) it will apply the same misconduct rules to approximately 37,000 non-banking financial firms starting September 1, 2026. Banks have operated under these stricter standards, but other regulated companies like insurance firms, investment managers and companies offering retail trading Retail Trading In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade Read this Term services previously faced less clear guidance on when workplace harassment constitutes a regulatory breach.

The move comes after the FCA received widespread backing from the industry during a consultation process. The regulator said 80% of respondents supported the approach, including 90% of trade bodies and 80% of authorized firms.

“Too often when we see problems in the market, there are cultural failings in firms,” said Sarah Pritchard, the FCA's deputy chief executive. “Behavior 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 Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term.”

This is a continuation of efforts that began early last year, when the FCA sent misconduct surveys to financial institutions, addressing issues such as sexism and harassment.

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New Misconduct Standards

The new framework will require firms to share details of serious, substantiated misconduct cases through regulatory references when employees move between companies. This mirrors existing requirements for financial misconduct and aims to prevent problematic individuals from simply switching firms to avoid consequences.

The FCA is simultaneously consulting on additional guidance to help firms implement the rules consistently. The draft guidance addresses how companies should evaluate non-financial misconduct when determining if someone is suitable to work in financial services, including considerations around social media use and private behavior.

However, the regulator stressed it won't duplicate existing legal requirements under equality legislation or recent rules requiring employers to prevent sexual harassment in the workplace.

The FCA Awaits Your Comment

The consultation on the guidance remains open until September 10, 2025. The FCA said it will only proceed with the additional guidance if there's clear industry support.

The FCA estimates the combined cost of implementing the rule and guidance at £75 million initially, with £40 million in ongoing annual expenses across the industry.

The regulator has been examining workplace culture in financial services following high-profile cases of misconduct and pressure from lawmakers. A Treasury Select Committee inquiry into sexism in the City highlighted the need for stronger regulatory oversight of non-financial misconduct.