Non-financial misconduct

In this episode, Rachel Wolcott and Lindsey Rogerson discuss the UK Financial Conduct Authority’s proposals to apply non-financial misconduct rules to an additional 37,000 regulated firms and lessons from the recent Upper Tribunal decision in the Jes Staley case. They begin by recapping the findings from the FCA’s survey of non-financial misconduct which was published last year as way of highlighting why the rule changes to the Code of Conduct (COCON) and Fit and Proper assessments is needed. They discuss why compliance and legal professional think guidance will help firms decide what “serious” bullying and harassment look like and most importantly how to deal with the individuals perpetrating such incidents. They also talk reasonable steps for managers who witness -- or are made aware that a member of their team is suspected of – non-financial misconduct. The conversation then moves onto consider the implications for financial firms’ senior executives and boards of the recent Upper Tribunal decision against Jes Staley, former CEO of Barclays. Links:July 2021 FCA/PRA joint discussion paper: Diversity and inclusion in the financial sector – working together to drive change https://www.fca.org.uk/publication/discussion/dp21-2.pdf September 2023 FCA consultation paper: Diversity and inclusion in the financial sector – working together to drive change https://www.fca.org.uk/publication/consultation/cp23-20.pdf March 2024 Treasury Committee Sexism in the City report expresses concern over D&I plans https://committees.parliament.uk/publications/43731/documents/217019/default/ October 2024 FCA survey of non-financial misconduct https://www.fca.org.uk/data/culture-non-financial-misconduct-survey-findings March 2025 FCA abandons D&I plans https://www.fca.org.uk/news/statements/update-fca-enforcement-transparency-proposals July 2025 Non-financial misconduct CP published CP25/18: Tackling non-financial misconduct in financial servicesJes Staley and Jeffrey Epstein: Evidence That Doomed Ex-Barclays CEO’s Career (paywall) Upper Tribunal Decision in Staley case: https://assets.publishing.service.gov.uk/media/685d21fec2633bd820a92a52/Staley_v_FCA_decision_for_release.pdf