The United Kingdom’s Financial Conduct Authority announced it is updating rules to improve detection and response to bullying, harassment, violence, and other forms of nonfinancial misconduct at insurance companies and other nonbank regulated entities.
The new rules, effective Sept. 1, 2026, will classify such behavior as a code of conduct violation, enabling companies to take stronger action against serious misconduct, establishing consistency across the financial sector, and clarifying when nonfinancial misconduct breaches regulatory requirements.
Around 37,000 nonbank firms will fall under the updated rules, which align regulations for nonbank organizations with those already applied to banks.
Serious instances of poor personal behavior will be reported across regulatory agencies in the same way as financial misconduct, making it more difficult for individuals to evade accountability by switching employers.
Sarah Pritchard, FCA deputy chief executive, stated that market problems often coincide with cultural failures, and unchecked bullying and harassment represent one of the clearest warnings.
She added that a culture where this persists undermines decision-making and risk management, and the updated rules will help maintain trust in financial services by supporting firms that aim to act responsibly.
A culture where this occurs can raise questions about a firm’s decision making and risk management. Our new rules will help drive consistency across industry and support the vast majority of firms that want to do the right thing to deepen trust in financial services.”
Sarah Pritchard, FCA deputy chief executive
As part of the process, the FCA is accepting comments until Sept. 10 on whether further guidance is needed as regulated entities prepare to implement the changes.
The Association of British Insurers welcomed the FCA’s stronger approach. Yvonne Braun, executive sponsor for diversity, equity, and inclusion at the ABI, stated that bullying, harassment, and violence have no place in financial services or society.
She stated that extending the rules to include insurers and long-term savings providers ensures consistency and accountability throughout the sector.
Braun noted that under its Diversity, Equity, and Inclusion Blueprint, the ABI encourages members to enforce a zero-tolerance policy and provides training to foster open workplaces where employees feel safe to speak up.
These actions, she added, demonstrate the members’ ongoing commitment to a more inclusive sector, which the ABI will reflect in its consultation response.
