FCA finds not enough firms have disciplinary policies in place

Editorial

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The survey collected data from over 1000 investment banks, brokers, and insurance firms. The results could indicate that more employees are willing to speak out when facing difficulties in the workplace, with not all participants in the survey having whistleblowing or disciplinary policies in place. 

26% of the concerns were related to bullying and harassment, and 23% were related to discrimination. However, the majority (41%) of the complaints were classified as ‘other’, which the FCA stated shows the complexity of the issue of categorising personal misconduct.

In 43% of cases, disciplinary or ‘other’ action was taken. In the rest, there was either no action taken, the investigation is ongoing, it was not investigated, or there was no conclusion.

The number of confidentiality and settlement agreements signed by complainants decreased from 2021 to 2023.

The FCA found that how firms identified forms of personal misconduct varied internally, but stated that non-financial misconduct was mostly detected through formal processes (50%) or whistleblowing.

The findings outline how the FCA conducts reporting and investigations of non-financial misconduct, the regulator stated this is to create a benchmark for firms to do so appropriately.

Sarah Pritchard, executive director of markets and international, at the FCA stated: “We want this data to support financial firms by providing their management teams and boards with an opportunity to consider if they stand out, and, if so, why that might be. The data requires context and careful interpretation. But, in being transparent, we hope financial firms can benchmark themselves against their peers.

“Healthy workplace cultures are essential across all the markets we regulate – where non-financial misconduct is allowed to persist it can undermine trust and confidence, and create a culture where wrongdoing goes unchallenged, causing harm.”