The new web page went live on 23 March 2026. It provides information on how firms should prepare for the new rules and guidance relating to non-financial misconduct (NFM), which will come into force on 1 September 2026.
Non-financial conduct is behaviour not of a financial nature and includes conduct such as bullying, harassment and violence. Where this conduct is serious and goes unchecked, says the FCA, this harms individuals, but it also undermines firms and the public’s confidence in the financial services industry. Its design is to eliminate unwanted conduct in the sector that does not fall under existing rules.
On the new webpage, the FCA sets out how NFM is covered by its rules and highlights the new rule in the FCA Code of Conduct (COCON), COCON 1.1.7 FR. There is also new Handbook guidance.
COCON 1.1.7FR will extend the scope of the conduct rules in non-banking firms to cover bullying, harassment or violence against colleagues where it relates to an individual’s role. It will apply where there is a sufficient work-related link, although it will not apply retrospectively.
Firms should be reviewing now whether they have adequate staff policies and assessment methods to enforce these new rules, including how breaches should be reported and whether fit and proper assessments are meeting the FCA’s rules. Firms must also ensure that staff and managers understand how the changes will apply to them.
There is no obligation on firms to carry out any retrospective analysis to check whether they correctly determined past conduct rule breaches or to revise past fitness and propriety assessments. Monitoring of employees’ private lives or social media accounts is not required, nor is there any obligation to investigate allegations about employees’ private lives if they are trivial, implausible or irrelevant.
Any individual working in an FCA-regulated organisation, whether they are SMCR-regulated or not, now needs to consider their conduct and to avoid bullying, harassment or violence, as any such charges are likely to have a serious adverse impact on their career.
This blog was written by Elizabeth McGlone, Managing Partner and Head of Dispute Resolution at didlaw.
