The Financial Conduct Authority’s (FCA) new rules on non-financial misconduct (NFM) will come into force on 1 September, bringing all firms regulated by the Senior Managers and Certification Regime (SMCR) into scope and not just banks. Non-banks will be required to prevent bullying, harassment or violence against colleagues where this is related to work, even where the conduct does not directly relate to regulated activities.
To support firms ahead of the changes, the FCA has published handbook guidance in PS25/23, which can be accessed here.
The NFM changes arrive during a period of significant regulatory and legislative change for financial services firms. Alongside the new FCA rules are developments including the prohibition of certain non-disclosure agreements (NDA) provisions, sexual harassment becoming capable of attracting whistleblowing protection, a strengthened duty to prevent sexual harassment and changes to employment tribunal and unfair dismissal rights.
We previously explored the FCA’s final guidance and the key factors the FCA will consider when assessing NFM (read our previous blog).
With regulatory and employment law obligations increasingly converging, now is the time for firms to review policies, training, investigation processes and governance arrangements to ensure they are fit for purpose ahead of the September implementation date.
Please do contact our specialists if you would like to discuss these changes or indeed require any other support in relation to financial services.
Read the full insight here.