Non-Financial Misconduct Guidance: What FCA Regulated Firms Need to Know Before September 2026
- Robert Bell
- 2 days ago
- 3 min read
Non-financial misconduct guidance is rapidly becoming one of the most important areas of FCA compliance. From 1 September 2026, new FCA rules and guidance will significantly strengthen the regulatory expectations placed on firms when dealing with bullying, harassment, discrimination, violence and other forms of serious workplace misconduct.
For many firms, this represents far more than an HR issue. The FCA has made it clear that culture, behaviour and individual accountability are central to achieving good customer outcomes and maintaining confidence in financial services.
What is changing?
The FCA's changes introduce a clearer regulatory framework for non-financial misconduct under both the Code of Conduct (COCON) and the Fit and Proper (FIT) requirements.
Key changes include:
Wider scope of the Conduct Rules – Serious work-related bullying, harassment and violence will more clearly fall within the FCA's Conduct Rules for firms subject to the Senior Managers & Certification Regime (SM&CR), bringing non-bank firms much closer to the existing position for banks.
Greater emphasis on fitness and propriety – Firms will be expected to consider a wider range of non-financial misconduct when assessing whether an individual remains fit and proper to perform their role. This includes circumstances both inside and, in some cases, outside the workplace where they are relevant to integrity and reputation (we've updated our fit and proper assessment template - see below).
Clearer guidance for managers – The FCA has published practical examples and guidance to help firms determine when misconduct falls within the regulatory framework and what reasonable steps managers should take.
Regulatory references – Serious non-financial misconduct may need to be reflected within regulatory references, helping prevent individuals from moving between firms without previous misconduct being appropriately disclosed.
Why this matters
The FCA has repeatedly highlighted that poor culture creates poor customer outcomes. Firms can no longer view bullying, harassment or other serious misconduct solely as employment matters.
Senior Managers, HR teams, Compliance professionals and Boards should now be asking:
Do our policies reflect the new FCA expectations?
Would managers know when behaviour becomes a regulatory issue?
Are our Fit and Proper assessments robust enough?
Do our disciplinary and investigation processes provide the evidence needed to support regulatory decisions?
With implementation only weeks away, firms that delay reviewing their arrangements risk inconsistent decision-making and increased regulatory scrutiny.
Practical steps firms should take now
Before September, we're ensuring our clients consider:
Reviewing their non-financial misconduct policy.
Updating Conduct Rules training.
Reviewing disciplinary and investigation procedures.
Refreshing annual Fit and Proper assessment processes.
Training Senior Managers and line managers on the new expectations.
Reviewing how regulatory references will be completed following serious misconduct findings.
Our Non-Financial Misconduct Guidance
If you're looking for practical non-financial misconduct guidance rather than simply reading the FCA Handbook, we've produced a comprehensive guide designed specifically for FCA regulated firms.
Our guide explains:
The new FCA requirements in plain English.
What has changed under COCON and FIT.
Practical examples of when conduct is (and isn't) likely to fall within scope.
Governance expectations.
Investigation considerations.
Implementation checklists.
Actions firms should complete before the rules take effect.
You can access the guide here:
Fit and Proper Assessment Template
The new rules also place greater emphasis on documenting robust Fit and Proper assessments.
Our professionally drafted Fit and Proper Assessment Template helps firms evidence consistent decision-making, maintain an effective audit trail and demonstrate compliance with FCA expectations.
View the template here:
Final thoughts
The FCA's new non-financial misconduct guidance marks one of the biggest cultural changes introduced under the SM&CR in recent years. Firms that prepare early will not only reduce regulatory risk but also strengthen governance, improve workplace culture and demonstrate that they take integrity seriously.
Now is the time to review your policies, update your assessment processes and ensure your managers understand the new regulatory expectations before the rules come into force on 1 September 2026.
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