Baroness Helena Morrissey voices concern about persistent sexism and misconduct in finance.
- A survey by the FCA reveals a 72% rise in non-financial misconduct allegations since 2021.
- Baroness Morrissey criticises insufficient regulatory guidance and escalating misconduct cases.
- About 40% of large firms lack formal procedures to tackle non-financial misconduct.
- Treasury Committee findings highlight stagnation in tackling harassment and increasing misuse of NDAs.
Financier Baroness Helena Morrissey has highlighted the enduring issue of sexism within the financial services sector, a concern she believes remains unchecked. Despite efforts, a survey by the FCA shows a worrying 72% increase in non-financial misconduct allegations between 2021 and 2023, suggesting persistent challenges in addressing workplace behaviour.
This rise in allegations, according to Baroness Morrissey, confirms that many individuals seem to evade accountability. She noted that we can expect to see continued instances of harassment, discrimination, and other types of poor behaviour within the industry.
The lack of regulatory guidance aggravates these issues. Morrissey expressed her frustration over the regulators’ slow response, emphasising that firms are in desperate need of more direction to tackle these persistent problems effectively.
A concerning 40% of large firms reportedly have no formal governance processes to address non-financial misconduct. This lack of structure often leaves such matters to inexperienced management teams, rather than being escalated to boards equipped to enforce proper resolutions.
The Treasury Committee’s recent findings further underscore the gravity of these issues. It points to a minimal change since 2018 in tackling sexual harassment and bullying in the industry, with a notable rise in the misuse of non-disclosure agreements. These agreements often silence victims while shielding perpetrators, thereby preventing meaningful change.
These findings stress an urgent need for systemic changes to eradicate ingrained sexism and misconduct within financial services.
