New Practice Note: Non-financial misconduct in financial services—essentials

Article summary

The LexisNexis Financial Services practical guidance team, in partnership with Amy Bird and Eleanor Matthews of Clifford Chance, has published a new Practice Note which addresses the Financial Conduct Authority (FCA)’s supervisory and enforcement focus on non-financial misconduct. It considers how the FCA defines non-financial misconduct, and the basis on which the FCA can take disciplinary or enforcement action against regulated firms and individuals for non-financial misconduct. It also addresses the development of the FCA’s approach to non-financial misconduct in enforcement actions and Upper Tribunal decisions and considers the FCA’s proposals to make change to its Handbook rules and guidance to address non-financial misconduct, as set out in its consultation paper CP23/20 Diversity and inclusion in the financial sector—working together to drive change. It further sets out a checklist of practical steps for firms to address and prevent non-financial misconduct.