Bullying, harassment and other forms of workplace misconduct will be treated as regulatory breaches in financial services from September, as the Financial Conduct Authority (FCA) moves to tighten expectations on workplace behaviour.
The changes mean firms will need to treat non-financial misconduct as a compliance issue, rather than solely a human resources matter, with implications for reporting, disciplinary processes and senior management accountability.
The move comes as evidence shows employees are increasingly raising concerns about workplace conduct, but are doing so more often through anonymous channels.
Workplace behaviour brought into regulatory scope
The FCA has confirmed that from 1 September 2026, its Code of Conduct rules will explicitly cover non-financial misconduct, including bullying, harassment and violence where there is a clear link to an individual’s role.
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The regulator said such behaviour, if serious and left unchecked, can harm individuals and damage confidence in financial services.
Under the new rule, misconduct does not need to be financial in nature to breach regulatory standards, provided there is a sufficient connection to work.
The FCA has also updated its Fit and Proper guidance, clarifying that firms can take a broader view of behaviour when assessing whether individuals are suitable to perform regulated roles, including conduct outside the workplace in certain circumstances.
Firms told to review policies and reporting processes
Ahead of the September deadline, firms are expected to review internal policies, reporting mechanisms and how they assess conduct breaches.
The FCA said organisations should ensure staff and managers understand how the rules apply, and consider whether updates are needed to whistleblowing channels, regulatory references and fitness and propriety assessments.
But the regulator made clear that firms are not expected to revisit past cases or carry out retrospective investigations, and should not monitor employees’ private lives or social media activity beyond what is relevant and lawful.
The guidance also sets out how employers should approach the boundary between work and private life, including how to handle unproven allegations and behaviour outside the workplace.
Rise in anonymous reporting signals trust challenges
The regulatory changes come as new data suggests employees are increasingly raising concerns about workplace issues, but are less willing to do so openly.
Research from Safecall, a UK provider of whistleblowing services, found that reports have increased for the fifth consecutive year, with one in 365 employees raising concerns in 2025, compared with one in 520 in 2020.
At the same time, the proportion of named reports has fallen sharply, from 37 percent in 2019 to 25 percent in 2025.
Anonymous reporting now accounts for more than half of all submissions, rising to 56 percent overall and 63 percent of web-based reports.
The data also points to differences in reporting behaviour depending on the channel used, with employees more likely to identify themselves when reporting concerns by phone than online.
The findings suggest that while reporting levels are rising, trust and psychological safety remain key challenges for firms.
Compliance and culture move closer together
The FCA’s approach signals a closer link between workplace culture and regulatory compliance, particularly in sectors where conduct standards are closely scrutinised.
By bringing non-financial misconduct into formal conduct rules, the regulator is placing greater responsibility on firms to address behaviour that may previously have been handled solely through HR processes.
This, observers say, is likely to increase the importance of clear reporting structures, consistent disciplinary frameworks and leadership accountability in managing workplace conduct.
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
