A recent survey by the UK’s Financial Conduct Authority (FCA) has reported a significant rise in complaints of bullying, harassment, and other non-financial misconduct within the financial services sector.
According to the FCA’s findings, reports of such misconduct increased by 72% between 2021 and 2023. This survey, the first of its kind conducted by the FCA, covered complaints in 1,000 firms across various sectors, including brokerage, corporate and investment banking, and insurance within the Lloyd’s of London market.
The FCA’s survey highlighted a steady growth in reports over the three-year period, with 1,363 incidents logged in 2021, 1,670 in 2022, and 2,347 in 2023. Bullying accounted for 26% of complaints, followed by discrimination at 23%. The remaining 40% of complaints included issues ranging from offensive language to drug use and pet-related incidents in the workplace.
Disciplinary actions were implemented in 43% of cases, though pay cuts or bonuses were docked in only 1-3% of incidents, primarily involving cases of violence, intimidation, or drug use. The survey noted that dismissals occurred in 21% of cases involving violent behavior, sexual harassment, and illegal substances. Fewer punitive financial measures, such as docking bonuses, were enacted, with such actions largely limited to breaches considered particularly severe.
The FCA did not indicate it would take further action following the report, instead deferring to industry bodies, such as UK Finance and the Association for Financial Markets in Europe (AFME), to use the findings to guide their members on best practices. Sarah Pritchard, an FCA director, explained that the data was intended to support financial firms in reviewing internal policies and identifying areas for cultural improvement.
The report’s release follows findings from a parliamentary inquiry into women’s experiences in finance, which indicated persistent challenges with workplace misconduct and concerns about an “old boys’ club” culture. The inquiry found that while sexist behavior in office settings had declined, inappropriate behavior had shifted to conferences and work trips, sparking fresh concerns about harassment within the industry.
The Guardian and Al Jazeera contributed to the report.
