In Regulatory Wrap for the week to October 25, Jennie Clarke discusses regulatory views on finfluencers and their role in financial promotion.
In this week’s Regulatory Wrap, we delve into the Financial Conduct Authority’s (FCA) survey results on non-financial misconduct (NFM) incidents occurring from 2021 to 2023 gathered from over 1,000 regulated financial services firms.
1. The FCA defines NFM as incidents of “bullying, sexual harassment, and discrimination, whether in or outside the workplace”
2. Included in the survey was information about the number and types of NFM incidences across the sector, how incidents are reported, and what disciplinary actions are taken in response
3. Some key findings were that the number of reported NFM incidents increased considerably over the three years observed in the survey; disciplinary actions were taken in 43% of cases; and the most reported types of NFM were bullying, harassment, discrimination
4. Despite the growing number of reported incidents, the FCA noted that a high number of complaints could indicate a healthy culture where personnel are comfortable speaking up
5. The continued focus on the topic demonstrates that the FCA is taking non-financial misconduct, and relatedly, workplace culture, seriously
This week’s Regulatory Wrap is brought to you by our Senior Content Writer, Jay Hampshire.
Both U.K. and U.S. regulators have made clear that they’re taking non-financial misconduct just as seriously as financial misconduct. The FCA’s survey results show that there’s work to be done, meaning firms should commit to communicating conduct expectations and cultivating a healthy workplace culture.
