With the FCA’s updated Code of Conduct coming into effect soon, firms should be actively preparing for the changes that are coming in September 2026 which clarify that serious bullying, harassment and violence qualify as misconduct under the FCA’s Code of Conduct (COCON).
Previously implied conduct will be explicitly recognised under the Code of Conduct which applies to nearly all financial services firms operating in the UK. Importantly, the scope of the rules extends beyond the workplace. Misconduct at firm-sponsored events will fall within the rules, while behaviour at unofficial social gatherings may also be relevant to fitness and propriety assessments where it amounts to serious non-financial misconduct.
Firms should be implementing the following:
✓ Updated policies and procedures that clearly address (NFM) non-financial misconduct.
✓ Disciplinary action that demonstrates a clear, firm approach to serious non-financial misconduct
✓ Training programmes that promote a ‘speak up’ culture.
✓ Notification to the FCA when required.
✓ Regulatory references that include relevant NFM information.
The Worker Protection Act adds another layer: Since October 2024, firms must take reasonable steps to prevent sexual harassment and respond promptly to incidents, supported by ongoing training and policy improvements.
From a Defence perspective, when allegations arise, the way in which businesses respond will be closely scrutinised. During investigations or disciplinary proceedings, bussinesses will need to demonstrate:
🔸 Documentation – Evidence of ‘reasonable steps’ and policy implementation.
🔸 Consistency – Fair application of disciplinary measures.
🔸 Timeliness – Prompt investigation and action.
🔸 Governance – Proper escalation processes.
Considerations:
Non-financial misconduct cases will have the potential to quickly escalate into regulatory investigations, fitness and propriety challenges and reputational crises. The firms that navigate these successfully will be those that:
⬥ Treat NFM with the same seriousness as financial misconduct.
⬥ Invest in robust investigation procedures and trend tracking.
⬥ Maintain clear escalation protocols.
Misconduct is a compliance and culture issue that demands active, diligent management. Are your policies – and your practices – ready for September 2026?