The Financial Conduct Authority (FCA) has reported an increase in workplace complaints from 2021 to 2023, according to its non-financial misconduct survey.
The survey gathered insights from over 1,000 investment banks, brokers, and insurance firms. The findings suggest that more employees may be willing to voice their concerns about workplace issues, particularly as not all participating firms have whistleblowing or disciplinary policies in place.
Bullying and harassment accounted for 26% of the reported concerns, while 23% were related to discrimination. Notably, the largest segment of complaints, 41%, fell into the ‘other’ category, highlighting the challenges in classifying personal misconduct.
In 43% of cases, some form of disciplinary or ‘other’ action was taken. In the remaining cases, there was either no action, ongoing investigations, or inconclusive outcomes. Additionally, the number of confidentiality and settlement agreements signed by complainants decreased from 2021 to 2023.
The FCA observed that firms varied in their identification of personal misconduct, with the majority of non-financial misconduct detected through formal processes (50%) or whistleblowing mechanisms.
These findings outline the FCA’s approach to reporting and investigating non-financial misconduct, aiming to establish a benchmark for firms to follow.
Sarah Pritchard, executive director of markets and international at the FCA, emphasized the importance of the data, stating, “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.”
She added, “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.”