All too often we hear about major conduct failings in our industry. Sometimes it’s an isolated event caused by the choices of a single individual. Other times, misconduct is endemic across a business, lurking just beneath the surface and taking well-meaning employees down with it. In almost every instance, a poor culture is the root cause.
The FCA has recently deemed three individuals ‘not fit and proper’ following their convinction of serious criminal offences. Unsurprisingly, a ban from working in financial services swiftly followed – the latest in a series of clear messages from the regulator that ‘non-financial misconduct is misconduct, plain and simple’.
Back in 2018, Megan Butler stated that sexual harassment and other forms of non-financial misconduct amount to a breach of the Conduct Rules and SMCR. In January this year, we saw the FCA laying out its expectations on how firms should proactively address non-finanical midconduct in a Dear CEO letter to the wholesale general insurance industry.
The message is loud and clear – the way you handle non-financial misconduct is indicative of your culture. And poor culture is bad for consumers, employees, markets and your balance sheet alike. The FCA’s pushing this issue forward through its supervision of firms and senior managers, so taking a proactive approach to address it is a no-brainer really.