UK FCA – Focus on Non-Financial Misconduct in the Insurance Market

  • Legal Development 2024年2月27日 2024年2月27日
  • 英国和欧洲

  • Regulatory & Investigations - People Challenges

The UK FCA continues its efforts to clamp down on non-financial misconduct in the workplace. Previously, misconduct would only be considered relevant if it was directly related to the financial activities of authorised or approved persons. Now, the stamping out of non-financial misconduct such as sexism, discrimination, harassment, victimisation, and bullying is clearly on the FCA´s radar.

The FCA effectively compelled, by a letter dated 6 February 2024, all regulated Lloyd´s Managing Agents and London Market Insurers (including P&I Clubs), and Lloyd´s and London Market Insurance Intermediaries (and Managing General Agents) to provide three years of data, from 2021-2023, on:

  • the number and type of non-financial misconduct incidents recorded, 
  • the method by which these incidents were detected, e.g., through whistleblowing or surveillance within firm,
  • the outcomes, such as dismissal, written warning, or complaint not upheld, and, finally, 
  • the further outcomes recorded, which include non-disclosure agreements and employment tribunals. 

The FCA specified that they were “requesting data that includes incidents that took place at the office, working from home, working offsite, and social situation related to work. This can include incidents that happened in any work-related capacity or event and may include events that have been organised through work, including staff social events, off-site training and conferences, client entertainment or sponsored events.”

The survey does not seek detailed information related to the specifics of allegations or investigations and should not contain personal information or name any individuals. 

The information is to be submitted by cob Tuesday 5 March 2024. Firms that fail to comply with the requirement imposed by the notice without reasonable excuse may be held in contempt of court. 

Authorised firms who in the past failed to notify previous incidents to the FCA may now be sitting a little uncomfortably. The FCA’s letter clearly emphasises the need to have robust HR systems and policies in place.