Tackling non-financial misconduct

Clearer rules are raising the stakes. We can provide crucial and independent oversight, and practical regulatory & legal expertise.

The FCA’s updated rules on non-financial misconduct (NFM) - including bullying, harassment, and broader behavioural failings are now a regulatory priority. From September 2026, firms across the financial sector will be expected to demonstrate robust, joined-up approaches to managing misconduct. That means clearer policies, better coordination, and sharper judgement on what counts as a regulatory breach.

For many firms, this is a complex balancing act, especially where FCA expectations intersect with employment law. And missteps can carry serious consequences. And getting it right requires a blend of practical expertise, legal clarity, and independent oversight.

What counts as non-financial misconduct?

While recent FCA focus has centred on harassment, discrimination and bullying, non-financial misconduct covers a wider range of behaviours including:

• Mishandling whistleblowers
• Breaches of expenses policies
• Dishonesty about qualifications
• Inappropriate use of social media
• Poor conduct in personal life with professional implications

The challenge is knowing when an issue is a regulatory problem, an HR issue, or both and acting accordingly.

What’s so challenging about non-financial misconduct?

Expertise gaps
A long-term approach requires a blend of regulatory, legal and operational expertise. Many in-house teams lack the full mix or seek external validation and benchmarking.

Coordination risk
Managing non-financial misconduct effectively needs close alignment between HR, compliance, and first-line managers. Without clear roles and proportionate processes, firms risk either underreacting or overengineering.

Conflicts of interest
When potential breaches arise, firms face inherent conflicts. Independent oversight helps demonstrate fair process and protect against regulatory scrutiny.

How we help

Working together, Ocorian and Mishcon de Reya provide a joined-up solution that reflects the real-world complexity of non-financial misconduct

Bringing together our practical know-how on designing, implementing and testing policies, processes and controls – alongside Mishcon’s deep legal expertise in  interpreting rules, navigating employment law, and advising on individual cases we can help with:

Implementation projects
We support firms in updating policies and controls to meet the new rules. From design and build of the control framework, down to technical content and escalation pathways for complex cases.

Ongoing support
Clients can access expert resource for breach investigations or policy reviews, with a built in feedback and remediation to continually strengthen controls.

Culture reviews
We can provide an independent review of culture, including HR and disciplinary procedures – with practical guidance where regulatory and legal issues overlap.

Whether it’s a one-off project or ongoing support, we’ll tailor our approach to your firm’s structure, risk profile and culture. Get in touch to find out more