Britain's financial regulator has mandated over 1,000 banks, insurers, and brokerages to disclose their records of sexual harassment, discrimination, and other non-financial misconduct cases since 2021, as well as their corresponding resolutions.
The Financial Conduct Authority (FCA) pledged to lawmakers in January to investigate how financial institutions address such misconduct, responding to complaints from victims who often feel silenced or compelled to resign. Concerns over London's financial sector perpetuating an "old boys club" culture, where perpetrators of abuse operate with impunity, intensified following sexual assault and misconduct allegations against hedge fund founder Crispin Odey and Confederation of British Industry (CBI) officials last year.
While Odey denies wrongdoing, his hedge fund closed, and the CBI disclosed the dismissal of staff for failing to uphold conduct standards. The FCA has issued Section 165 notices, granting it the authority to compel firms to furnish information, to 184 investment banks, 217 commercial insurers, 349 insurance intermediaries, and 288 wholesale brokers. Failure to comply could result in public censure, fines, or premises searches.
In its quest for comprehensive data, the FCA seeks information on the frequency, detection methods, and outcomes of non-financial misconduct incidents, including details on NDAs and employment tribunal proceedings. Additionally, the regulator is interested in cases involving senior managers and the settings in which incidents occurred, such as office premises, remote work arrangements, offsite locations, or work-related social situations.
Notably, firms may fulfil their obligations even if bound by non-disclosure agreements (NDAs), according to legal experts.