Steven Francis Comments on Potential Risks of FCA’s Non-Financial Misconduct Rules With Law360

London insurance partner Steven Francis discussed potential risks associated with the Financial Conduct Authority's (FCA) newly adopted non-financial conduct scheme in an article for Law360.

According to Law360, the FCA’s new rules aim to hold businesses outside banking — such as asset managers and insurers — to the same standards already in place for lenders. Included is a “conduct rule” that targets bullying, harassment or violence against colleagues at work, while parallel "fit and proper" guidance covers some misconduct by employees in their private life. Companies must take each into account separately.

Francis noted the conduct rule will require "robust" messaging from management to shift work culture to ensure compliance with the new regulations. Good management, Francis said, can help send a clear message to employees to take the conduct rule seriously.

"I think it's easy for senior management to take the view that the rules shouldn't trouble them because the workplace encourages speaking up, or it's such a lovely place to work that nobody needs to speak out," Francis said. "These are dangerous mindsets."