FCA Extends Conduct Rules to Workplace Misconduct at 38,000 Firms

Britain’s Financial Conduct Authority is bringing non-financial misconduct, including workplace bullying and harassment, more firmly within its regulatory framework. The shift elevates conduct once handled largely as an internal human-resources matter into a formal compliance concern, reflecting the FCA’s view that employee behaviour and corporate culture can affect governance, risk management and trust across the financial sector.

From September 2026, the expanded conduct rules will apply to nearly 38,000 FCA-authorised financial firms. Companies will need to connect information from human resources, complaints, whistleblowing and other reporting channels, while maintaining investigation records, preserved evidence and documented reasoning. The compliance test will therefore extend beyond having policies on paper: firms must be able to demonstrate to the regulator how allegations were assessed and why decisions were reached.