UK’s FCA to probe local financial firms and conduct harassment and misconduct surveys
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UK-based financial firms regulated by the Financial Conduct Authority (FCA) need to prepare for misconduct and harassment surveys which will be starting next week, in mid-February. The regulator confirmed that it has already delivered the first series of questionnaires to insurance companies, with banks and brokers being the next.
The new move comes due to reports that women who want to join the finance industry are exposed to harassment, and the regulator is determined to investigate the matter.
Questionnaires have already started to arrive to certain firms, with more to follow
According to the regulator, detailed surveys have already reached wholesale insurance firms, requesting data regarding any potential complaints, disciplinary actions, and the use of NDAs related to issues such as discrimination, sexual harassment, or bullying. The regulator has requested all such documents related to the period covering the past three years.
However, it is also expanding the survey to brokers and banks now. All companies that the FCA has contacted, or will reach out in the future, will have four weeks to collect and submit extensive information on any allegations and non-financial misconduct.
The regulator’s spokesperson said: “We will be extending our survey to wholesale banks and brokers next week. This work is intended to support the FCA’s understanding of the types and instances of non-financial misconduct firms are seeing and how they are handling it.”
It is worth noting that the FCA said that more disclosures will not necessarily indicate a worse environment. However, the hope is that the survey results would push companies toward greater transparency. Furthermore, the country’s financial watchdog also wants the companies to take allegations seriously, and develop special procedures that would result in prompt investigations, and later, appropriate actions.
Why is the FCA investigating misconduct now?
The crackdown on the financial sector comes in the middle of growing scrutiny on misconduct in the industry, as the FCA received more than 200 suspicions related to non-financial misconduct in the last two years alone. The regulator even started several cases based on these reports and complaints.
Apart from that, specialty insurer Atrium Underwriters was even fined 1m GBP for failing to prevent discrimination and harassment issues, which persisted and were left unchecked.
The FCA has been planing to launch this type of survey for some time, as some rumors that the crackdown of this type is coming started circulating a month ago. The regulator’s Executive Director, Sarah Pritchard, said that the questionnaire has several goals, including to take stock and share best practices after the results are collected, which is expected to take place by mid-year. More than that, it should help shape the regulator’s supervision as the new rules involving conduct in the industry are implemented.
