Non-financial misconduct in financial services regulation – where do we stand?
In this updated briefing, we consider the FCA's stance on non-financial misconduct to date, including the recent release of long-awaited rules and accompanying guidance on the topic.
In recent years, the FCA has made no secret of its wish to bring non-financial misconduct within the scope of its regulatory remit, and has taken assertive action, including through supervisory statements and enforcement action, to demonstrate its commitment to doing so. However, in the absence of clear parameters setting out the scope of its regulatory remit, the FCA's powers to address non-financial misconduct lacked clarity.
Following consultation papers in September 2023, on 2 July 2025, the FCA published new rules on non-financial misconduct alongside a consultation paper on proposed accompanying guidance about how those rules should be applied. The new rules, which will come into force on 1 September 2026, confirm that serious bullying, harassment or violence amount to Conduct Rules breaches in respect of which the FCA may take enforcement action. This aligns the rules which apply to non-banks with those which already apply to banks.
On 12 December 2025, the FCA published a policy statement confirming its final guidance on non-financial misconduct. Like the new rules, the guidance will come into force on 1 September 2026.
Please read the full briefing below.
