Gearing Up for Non-Financial Misconduct Reporting

From September 2026, the FCA will introduce important changes to how firms must identify, assess, and manage non-financial misconduct.

This marks a clear shift in regulatory expectations — and one that firms cannot afford to overlook.

What is changing?

Non-financial misconduct (NFM) refers to behaviours such as:

• Bullying or harassment

• Discrimination

• Serious personal misconduct that raises questions about an individual’s integrity

While firms have always been expected to consider conduct and culture, the new rules make it explicit that such behaviour must be included in the fit and proper assessments undertaken for both Senior Managers and Certification staff. This change impacts both recruitment versions of the assessments and the annual re-assessments, as a result firm's may reconsider the checks they undertake when employing a new individual, expanding the scope to identify potential issues. Equally it requires firm's to:

• Consider NFM when applying the Conduct Rules

• Ensure issues are properly recorded, investigated, and escalated

• Take reasonable steps to embed a culture where misconduct is identified and addressed

As ever firms will need to demonstrate that they act consistently and fairly and maintain clear governance and oversight of the process, specifically for senior managers with this responsibilities. The starting point is to revisit your relevant policy and procedure, building the framework you will use to determine whether a misconduct issue should result in disciplinary action or failure of the fitness assessment. Note: If you need support designing this, just reach out to us!

Why it matters

Getting it right is a regulatory requirement, but to do so you need to recognise the changes go beyond policy updates. They require firms to align HR, compliance, and governance frameworks, make judgement calls on sensitive issues, and evidence decisions in a way that stands up to regulatory scrutiny.

For many firms, this introduces:

• Uncertainty around interpretation

• Risk if issues are mishandled

• Additional pressure on already stretched teams

How RB Compliance Consultancy Limited can support you

At RB Compliance Consultancy, we act as a trusted partner to firms navigating regulatory change — helping you stay compliant without unnecessary complexity.

Our focus is simple:

✔ Protect your business from regulatory risk

✔ Keep you prepared and regulator-ready

✔ Take the stress away so you can focus on running and growing your business

Our approach: simple, practical, effective

Many firms overcomplicate compliance. We don’t.

We provide clear, practical support tailored to your business, including:

• Reviewing your current framework against the new NFM expectations

• Helping you define clear, workable policies and procedures

• Supporting fitness and propriety assessments

• Advising on governance, documentation, and decision-making

• Ensuring your approach is proportionate, consistent, and defensible

Get ahead of the changes

September 2026 may seem some way off — but firms that act early will be in a far stronger position.

If you’d like to understand what these changes mean for your business — and how to prepare in a clear, practical way — we’d be happy to help.

Get in touch to start the conversation