The financial services industry has been waiting with bated breath for the release of the FCA’s next instalment setting out how it proposes to tackle non-financial misconduct in financial services. CP25/18 was finally released on 2 July 2025 and now clarifies its expectations in respect of bullying, harassment and violence in financial services. The new paper contains draft guidance on how firms should consider non-financial misconduct (which for the first time clearly includes bullying and harassment) when assessing Conduct Rule breaches and fit and proper status. It also covers its expectations on how a person behaves in their private life and the use of social media.
The guidance is not yet in force and is open for consultation until 10 September 2025.
Reference is also made to the new duty to prevent sexual harassment which came into force in October last year and the guidance suggests that failing to provide an environment where people feel free to raise concerns about bullying and harassment (and for example failing to prevent sexual harassment) may amount to a breach of Conduct Rule 2 (individuals must act with due skill, care and diligence). In addition, subjecting someone to a detriment because they raised a whistleblowing complaint is listed as an example of a potential breach of Conduct Rule 1 (Integrity).
Following criticism, the FCA quietly dropped its proposals on diversity and inclusion and has pared back other proposals previously made relating to issuing guidance on regulatory references. Interestingly, the FCA states in respect of this most recent paper, that it will only proceed “if there is clear support for it”.
CP25/18 is hot off the press and we are digesting the key issues (and areas that may look to cause concern). We intend to publish a more detailed update shortly. Please get in touch to hear about attending one of our non-financial misconduct seminars addressing the themes from the CP taking place in July.
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The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at July 2025.