Financial
firms regulated by the Financial Conduct Authority (FCA) should prepare for
harassment and misconduct surveys arriving next week. As confirmed by the
regulator, the first questionnaires have already been sent to insurance
companies, and next in line are banks and brokers.
The FCA has
already sent detailed surveys to wholesale insurance firms, asking for
data on complaints, disciplinary actions, and use of non-disclosure agreements
(NDAs) related to issues like bullying, sexual harassment and discrimination
over the past three years.
Now, the
regulator is expanding the survey to banks and brokers. Firms will have just
four weeks to collate and submit extensive information on any allegations or
evidence of non-financial misconduct since early 2021, according to information
confirmed by Financial News (FN).
“We will be
extending our survey to wholesale banks and brokers next week,” the FCA spokesperson
commented for FN. “This work is intended to support the FCA’s understanding of
the types and instances of non-financial misconduct firms are seeing and how
they are handling it.”
While the
FCA states that more disclosures don’t necessarily indicate a worse
environment, the survey results could pressure firms toward greater
transparency. The regulator also wants firms to take allegations seriously and
have procedures to investigate promptly and take appropriate action.
This
crackdown comes amid growing scrutiny of misconduct in the financial sector.
Over two years, the FCA received 200 suspicions related to non-financial
misconduct and started several cases. What is more, specialty insurer Atrium
Underwriters was fined £1 million for failures allowing discrimination and
harassment issues to persist unchecked.
Brokers
should inform compliance
Compliance
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a
Read this Term teams and senior management to expect the survey next
week. Given the short turnaround, firms should quickly pull together relevant
misconduct data to demonstrate an environment of accountability rather than
attempting to hide problems.
Sexism in the City
We first
learned a month ago that surveys of this type would be introduced. The FCA
Executive Director, Sarah Pritchard, told lawmakers the questionnaire aims to
“take stock” and “share best practice” once completed by
mid-year. But more importantly, it will shape the FCA’s supervision as new
conduct rules are implemented.
The
questioning occurred during parliament’s “Sexism in the City” inquiry
into sexual harassment and old boys’ club dynamics. The need for action is
clear – a recent summary found most women in finance directly experienced or
knew of sexual harassment but faced barriers reporting it.
Watch our director @fionamacmac talking to@CommonsTreasury‘s Sexism in the City enquiry this morning:
“The industry eliminates women with caring responsibilities…. that’s where we have this crushing loss of talent.”
More childcare isn’t the solution for women’s… pic.twitter.com/s7ZGqk2frY
— The Other Half (@OtherHalfOrg) October 17, 2023
Firms
frequently use NDAs to protect reputations and silence victims after
settlements. But this removes incentives to seriously address problems. Based
on recommendations, the FCA could threaten fines for misconduct enablers, make
firms disclose NDA numbers, and expand its fit and proper standards around
non-financial conduct.
UK finance firms acknowledge “awful” culture in an inquiry investigating sexism in the City of London https://t.co/ILl6VbWH6Y
— Bloomberg (@business) November 15, 2023
However,
the number of women in finance is growing. Last November, the trade
associations for hedge funds, banks, and insurance firms provided updated
workforce figures to the UK lawmakers examining sexism in finance. Within the
hedge fund sector, the proportion of women increased from 19% in 2019 to 27% in
2023.
Financial
firms regulated by the Financial Conduct Authority (FCA) should prepare for
harassment and misconduct surveys arriving next week. As confirmed by the
regulator, the first questionnaires have already been sent to insurance
companies, and next in line are banks and brokers.
The FCA has
already sent detailed surveys to wholesale insurance firms, asking for
data on complaints, disciplinary actions, and use of non-disclosure agreements
(NDAs) related to issues like bullying, sexual harassment and discrimination
over the past three years.
Now, the
regulator is expanding the survey to banks and brokers. Firms will have just
four weeks to collate and submit extensive information on any allegations or
evidence of non-financial misconduct since early 2021, according to information
confirmed by Financial News (FN).
“We will be
extending our survey to wholesale banks and brokers next week,” the FCA spokesperson
commented for FN. “This work is intended to support the FCA’s understanding of
the types and instances of non-financial misconduct firms are seeing and how
they are handling it.”
While the
FCA states that more disclosures don’t necessarily indicate a worse
environment, the survey results could pressure firms toward greater
transparency. The regulator also wants firms to take allegations seriously and
have procedures to investigate promptly and take appropriate action.
This
crackdown comes amid growing scrutiny of misconduct in the financial sector.
Over two years, the FCA received 200 suspicions related to non-financial
misconduct and started several cases. What is more, specialty insurer Atrium
Underwriters was fined £1 million for failures allowing discrimination and
harassment issues to persist unchecked.
Brokers
should inform compliance
Compliance
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a
Read this Term teams and senior management to expect the survey next
week. Given the short turnaround, firms should quickly pull together relevant
misconduct data to demonstrate an environment of accountability rather than
attempting to hide problems.
Sexism in the City
We first
learned a month ago that surveys of this type would be introduced. The FCA
Executive Director, Sarah Pritchard, told lawmakers the questionnaire aims to
“take stock” and “share best practice” once completed by
mid-year. But more importantly, it will shape the FCA’s supervision as new
conduct rules are implemented.
The
questioning occurred during parliament’s “Sexism in the City” inquiry
into sexual harassment and old boys’ club dynamics. The need for action is
clear – a recent summary found most women in finance directly experienced or
knew of sexual harassment but faced barriers reporting it.
Watch our director @fionamacmac talking to@CommonsTreasury‘s Sexism in the City enquiry this morning:
“The industry eliminates women with caring responsibilities…. that’s where we have this crushing loss of talent.”
More childcare isn’t the solution for women’s… pic.twitter.com/s7ZGqk2frY
— The Other Half (@OtherHalfOrg) October 17, 2023
Firms
frequently use NDAs to protect reputations and silence victims after
settlements. But this removes incentives to seriously address problems. Based
on recommendations, the FCA could threaten fines for misconduct enablers, make
firms disclose NDA numbers, and expand its fit and proper standards around
non-financial conduct.
UK finance firms acknowledge “awful” culture in an inquiry investigating sexism in the City of London https://t.co/ILl6VbWH6Y
— Bloomberg (@business) November 15, 2023
However,
the number of women in finance is growing. Last November, the trade
associations for hedge funds, banks, and insurance firms provided updated
workforce figures to the UK lawmakers examining sexism in finance. Within the
hedge fund sector, the proportion of women increased from 19% in 2019 to 27% in
2023.