The Financial Conduct Authority’s (FCA) additional guidance to non-financial misconduct (NFM) rules has received a lukewarm reception from the industry, after additional guidance had been promised over the summer.
Last week (12 December), the regulator unveiled a policy statement with the additional details it had added to the rules – which are set to come into force from 1 September 2026. The update included flow charts and examples on the application of the updated rules; a clearer alignment with employment law; clarifications around managers' accountability and the expectation that firms are not required to investigate "trivial or implausible" allegations or even breach privacy law. Some of the updates related to how NFM fits in with the wider fitness and propriety test, as the regulator pre...
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