The rise in non-financial misconduct should be a cause for concern – Jo Keddie quoted in Insurance Day and MLex
Whilst the Budget may have dominated the headlines over the past few weeks, some news that may have passed you by, but worth highlighting is the publication by the FCA of its long-awaited survey covering non-financial misconduct.
The survey of over 1,000 investment banks, brokers and wholesale insurance firms found that the number of reported allegations of non-financial misconduct had risen between 2021 and 2023. I have shared my thoughts on these concerning statistics with Insurance Day and MLex.
Of concern is the worrying increase in sexual harassment, discrimination, and bullying reports since employees returned to the office post-pandemic. With new legislation effective from 26 October, aimed at preventing sexual harassment in the workplace it is hoped that at least this type of unlawful behaviour will come into sharper focus with regulated businesses as they take steps to comply with the new legal requirements.
It is troubling to read that where non-financial misconduct has been upheld there were rarely financial repercussions for the perpetrator. The FCA’s publication of these statistics makes it appropriate, if not necessary, for non-financial misconduct to become a more important feature of annual pay reviews especially in the context of bonuses.
However, I am pleased to see the importance placed by the FCA on Settlement Agreements not being used to prevent public interest disclosures to it by departing employees. It is also encouraging to read that the FCA is aware of the important but nuanced role which settlement agreements play in the context of non-financial misconduct.
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