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Clifford Chance

Clifford Chance

Briefings

Non-Financial Misconduct in Financial Services Regulation - Where do we stand?

22 December 2020

Three new decisions from the Financial Conduct Authority (FCA) show renewed focus on “non-financial misconduct,” a term covering issues such as sexual misconduct and bullying, but a recent High Court finding against another regulator, the Solicitors Regulation Authority (SRA), potentially undermines the FCA approach.

This briefing explores, amongst other issues: when non-financial misconduct may amount to a breach of the Conduct Rules; how non-financial misconduct should be assessed; what the regulatory expectations on firms are to conduct investigations and notify the regulator; how the FCA views culture and psychological safety and links these with its objectives; and will there be a shift in stance as the High Court has recently cautioned regulators against being “dogmatic.”

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