The new guidance provides a formal regulatory definition, centering on bullying, harassment, and violence.
COCON
Firms should take steps now to identify and mitigate NFM-related risks, including improving culture (a key driver of good conduct).
Regulatory topics that will have a significant impact on institutions operating in the UK financial services sector this year.
Moving from soft culture to hard rules, the FCA explicitly categorizes serious NFM as a breach of regulatory conduct standards.
The FCA, Treasury, and PRA are tabling proposed changes to the SMCR, alongside raising standards around non-financial misconduct.
New rule, COCON 1.1.7FR, expands the scope of COCON for non-banks in the context of NFM and comes into force on September 1, 2026.
Ashurst set out the key takeaways from the paper, which is clearly important – but not for the reasons the FCA has given.
Under the new rules, serious bullying and harassment in all regulated firms will qualify as misconduct.