The FCA has published the results of a survey to better understand how firms record and manage allegations of non-financial misconduct.
The survey of over 1,000 investment banks, brokers and wholesale insurance firms found that the number of allegations reported increased between 2021 and 2023.
When the survey launched, the FCA was clear that it was likely that data could be read in different ways. For example, a high number of complaints could be an indicator of a healthy culture in which people feel they can speak up, confident they will be listened to. A low reporting rate may indicate the opposite.
In the 3 years covered by the survey, bullying and harassment (26%) and discrimination (23%) were the most recorded concerns. However, the large ‘other’ group of concerns (41%) indicates how difficult it can be to categorise issues of personal misconduct.
The FCA found that firms identified concerns through a variety of mechanisms. Some firms were using their internal systems to identify potential issues, although formal processes and whistleblowing were the most prevalent methods of detection.
The findings are being shared to enable firms to benchmark their own reporting against this peer analysis and consider if their processes for reporting and investigating possible non-financial misconduct remain appropriate. Trade associations will play a key role in coordinating industry-wide analysis and actions. The FCA expects that stakeholders from other sectors of the economy, or with an interest in workplace culture may find this data useful.
Sarah Pritchard, executive director of markets and international, said: ‘We want this data to support financial firms by providing their management teams and boards with an opportunity to consider if they stand out, and, if so, why that might be. The data requires context and careful interpretation. But, in being transparent, we hope financial firms can benchmark themselves against their peers.
‘Healthy workplace cultures are essential across all the markets we regulate – where non-financial misconduct is allowed to persist it can undermine trust and confidence, and create a culture where wrongdoing goes unchallenged, causing harm.
‘We are grateful to see a number of trade bodies engaging with these findings. We look forward to continuing to partner with them to continue to raise standards.’
