The Financial Conduct Authority (FCA) recently released a survey addressing non-financial misconduct within financial services, sparking interest among professional bodies. Key findings indicate a significant rise in incidents, with a notable focus on bullying and harassment. Professional organisations anticipate developing new guidance in response. The survey captures a detailed snapshot of misconduct trends from 2021 to 2023.
The Financial Conduct Authority (FCA) has released a comprehensive survey that provides a critical examination of non-financial misconduct within the financial services sector. This survey, which has garnered attention from various professional bodies, highlights a pressing opportunity for change within the industry. According to the findings, there has been a substantial rise in reported non-financial misconduct incidents, which suggests an urgent need for reform and proactive measures.
Specifically, the survey revealed a worrying trend of increased misconduct, documenting 1,363 reported incidents in 2021, rising to 1,670 in 2022, and further escalating to 2,347 in 2023. These statistics underscore a concerning trajectory, with incidents related to bullying and harassment constituting 26% of reported cases. Discrimination accounted for 23% of incidents, while a significant 41% fell into the ‘other’ category, indicating a range of unspecified misconduct types.
The scope of the survey involved polling over 1,000 wholesale insurers, banks, and brokers, providing a broad perspective on the state of misconduct across different sub-sectors within financial services. The data collected from these reputable sources offers a nuanced understanding of the prevalent issues, emphasising the necessity for immediate and decisive action from industry leaders to address these challenges.
Professional organisations, including the Personal Investment Management and Financial Advice Association (PIMFA), have acknowledged the findings, recognising the impetus to develop comprehensive guidance aimed at mitigating these issues. There is a clear acknowledgment that addressing such misconduct is crucial not only for the ethical climate of the industry but also for restoring trust and transparency with clientele and stakeholders.
The FCA’s survey serves as a vital call to action for financial services to address non-financial misconduct and implement needed reforms.
