The Financial Conduct Authority has published guidance confirming that, from the 1st of September 2026, bullying and harassment will automatically be considered relevant to conduct-rule assessments across FCA-regulated firms. This includes non-bank entities such as insurers, asset managers and pension providers. The change marks a definite shift for non-banks, which previously had to determine whether alleged misconduct was sufficiently connected to regulated business before applying conduct rules. That threshold will no longer apply in bullying and harassment cases, although it remains in place for other behaviours such as discrimination and victimisation. While firms are not expected to retrospectively audit past decisions, they may need to revisit prior classifications if issues resurface. For HR and investigation teams, the update highlights the need to align processes with regulatory standards and to distinguish clearly between disciplinary outcomes and conduct-rule conclusions, as workplace behaviour may now have regulatory consequences.
