The Financial Conduct Authority (FCA) has published the results of a survey to better understand how investment banks, brokers and wholesale insurance firms record and manage allegations of non-financial misconduct, such as bullying, sexual harassment and discrimination.
The survey of more than 1,000 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, while a low reporting rate could indicate the opposite. Â
In the three 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%) indicated how difficult it can be to categorise issues of personal misconduct. Â
The FCA found a variety of mechanisms through which firms identified concerns.
Some firms used internal systems to identify potential issues, although formal processes and whistleblowing were the most prevalent methods of detection.Â
The findings were shared to enable firms to benchmark their own reporting against 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 said it expects that stakeholders from other sectors of the economy, or with an interest in workplace culture may find this data useful.Â
Sarah Pritchard, executive director of markets and international at the FCA, 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.”
