CP25/18: FCA sets out final rules on non-financial misconduct and consults on guidance
The Financial Conduct Authority (FCA) has published consultation paper and policy statement CP25/18 setting out the final rules on certain non-financial misconduct (NFM) elements of its earlier consultation CP23/20 on diversity and inclusion (D&I) . The FCA has clarified that NFM involving serious bullying, harassment and violence is a matter of regulatory concern and will be treated as misconduct under the FCA’s Conduct Rules (COCON). From 1 September 2026, the scope of COCON will be extended. A new rule, COCON 1.1.7FR will bring around 37,000 non-bank regulated firms into its scope, aligning the rules across all firms subject to the Senior Manager & Certification Regime (SM&CR firms). The FCA is also consulting on whether further guidance through proposed amendments to FIT and COCON (updating proposed guidance in CP23/20) would be helpful and proportionate for firms as they implement the rule change. The consultation is open until 10 September 2025.