Earlier this year, the UK Financial Conduct Authority noted a significant uptick in reported sexual harassment allegations. This increase prompted Parliament's Treasury Committee to launch an inquiry into "Sexism in the City." Throughout that inquiry, witnesses have called on the FCA to take a more active role in preventing non-financial misconduct.
Baroness Helena Morrissey, chair of the Diversity Project, testified in the first hearing and raised concerns about the FCA's recent consultation paper, "Diversity and Inclusion in the Financial Sector." The paper proposed incorporating non-financial misconduct into fitness and propriety assessments and conduct rules, but stipulated that only "serious misconduct" would qualify as a violation. Morrissey worried about the lack of clear definition and scope for "serious misconduct," urging the FCA to strengthen disciplinary sanctions to deter misconduct effectively, emphasizing potential "career-ending" consequences.
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