The FCA's Position on Firm Culture Has Shifted. It Now Considers Workplace Conduct a Regulatory Matter, Not Just an HR One.
The Equality Act 2010 creates legal obligations. SYSC creates regulatory ones. For FCA-regulated firms, they intersect. A firm that tolerates bullying or harassment isn't just exposing itself to Employment Tribunal claims — it's demonstrating to the FCA that its governance, systems and controls, and conduct risk management are inadequate. SYSC 3A.2.1R requires adequate policies and procedures. SYSC 5.1.1R addresses employment practices. SYSC 22 governs regulatory references — and a Senior Manager dismissed for harassment generates a regulatory reference that follows them to every future FCA authorisation. Under SM&CR, a firm that fails to prevent a Conduct Rules breach by a Senior Manager — including conduct rule 1 (act with integrity) violations — faces accountability questions of its own. The FCA's thematic work on non-financial misconduct has made clear that harassment, bullying, and discriminatory conduct are conduct risk issues that bear on a firm's fitness and propriety assessment. Firms that wait for an incident to discover their policy is inadequate — that it doesn't cover digital harassment, doesn't address third-party perpetrators, lacks a proper investigation timeline, or fails to protect against victimisation — find themselves managing an Employment Tribunal, an FCA notification, and a reputational crisis simultaneously. This comprehensive Bullying and Harassment Policy gives FCA-regulated firms a complete Equality Act and SYSC-aligned framework covering every form of prohibited conduct, every protected characteristic, multi-channel harassment, robust reporting channels, investigation procedures, disciplinary sanctions including regulatory consequences, and victim protection — built for firms that understand culture is a regulatory matter.
The employment claim is expensive. The FCA referral is permanent.
What's included: Full regulatory mapping — Equality Act 2010 ss26-27 (harassment definition: unwanted conduct/purpose or effect test/victim's reasonable perception/three categories: related harassment/sexual harassment/less favourable treatment for submission or rejection) and s27 (victimisation: protected acts including good faith complaints/witness evidence/colleague support), Health and Safety at Work etc. Act 1974, Employment Rights Act 1996, Protection from Harassment Act 1997, Human Rights Act 1998, SYSC 3A.2.1R (adequate policies and procedures), SYSC 5.1.1R (employment and remuneration practices), SYSC 22 (regulatory references), SM&CR Individual Conduct Rule 1 (integrity), FCA Principles for Businesses PRIN 6 (customers' interests) and PRIN 8 (conflicts of interest) · Nine protected characteristics framework — Age/Disability (substantial and long-term adverse effect)/Gender Reassignment/Marriage and Civil Partnership/Pregnancy and Maternity/Race (colour/nationality/ethnic or national origins)/Religion or Belief (including lack of belief)/Sex/Sexual Orientation — plus harassment by association (related to third parties with characteristic) and harassment by perception (perceived possession regardless of accuracy) and intersectionality (multiple simultaneous characteristics) · Six-channel harassment taxonomy — Face-to-Face (verbal abuse/physical intimidation/persistent unwanted attention/exclusion), Electronic and Digital (all electronic mediums), Telephone (repeated calls/verbal abuse/voicemail misuse/conference call humiliation), Email and Written (offensive content/mass distribution/forwarding private information without consent), Social Media and Online (fake profiles/cyberstalking/impersonation/online monitoring), Technology-Facilitated (unauthorised recording/surveillance misuse/collaboration tool misuse) · Single incident harassment — explicitly addressed: one incident if sufficiently serious · Investigation timeline — 2 working day initial assessment/5 working day commencement/15 working day evidence gathering/20 working day report/25 working day final determination — with external investigator provision for senior management allegations or conflicts of interest · Disciplinary sanctions ladder — verbal warning/first written/final written/demotion or transfer/suspension without pay/dismissal with notice/summary dismissal for gross misconduct — with explicit gross misconduct examples: physical assault/sexual harassment or assault/persistent harassment post-warning/seriously hostile environment/deliberate victimisation · Regulatory consequences framework — withdrawal of regulatory approval or certification/FCA fitness and propriety referral/regulatory body notification/regulatory reference implications (SYSC 22) — explicitly mapped to SM&CR controlled and certification function holders · Victim protection — Section 27 Equality Act victimisation prohibition/immediate protective measures: working arrangement adjustment/reporting line modification/no-contact directives/24/7 EAP access (including immediate family)/occupational health/reasonable adjustments framework/ongoing welfare monitoring · Reporting channels matrix — direct line manager/HR/senior management/anonymous hotline or portal/employee representatives/external channels — with explicit provision for cases where line manager or HR is the alleged perpetrator · Four-level responsibility framework — employees/managers and supervisors/senior management and leadership/firm institutional responsibilities — with named duties at each level · Monitoring framework — incident data (complaint volumes/nature/demographics/outcomes/timescales/disciplinary effectiveness)/quarterly compliance reporting to Senior Management/annual staff culture survey/exit interview analysis/pulse surveys · Annual policy review by SMF compliance holder with Board approval for material amendments
Built for: Compliance Officers, HR Directors, SMF16 holders, and senior management at FCA-regulated firms who need a complete Equality Act 2010 and SYSC-aligned Bullying and Harassment Policy that addresses every form of prohibited conduct, protects the firm against both Employment Tribunal and regulatory exposure, and demonstrates to the FCA that workplace conduct is managed as a conduct risk matter.
The FCA's Position on Firm Culture Has Shifted. It Now Considers Workplace Conduct a Regulatory Matter, Not Just an HR One.
The Equality Act 2010 creates legal obligations. SYSC creates regulatory ones. For FCA-regulated firms, they intersect. A firm that tolerates bullying or harassment isn't just exposing itself to Employment Tribunal claims — it's demonstrating to the FCA that its governance, systems and controls, and conduct risk management are inadequate. SYSC 3A.2.1R requires adequate policies and procedures. SYSC 5.1.1R addresses employment practices. SYSC 22 governs regulatory references — and a Senior Manager dismissed for harassment generates a regulatory reference that follows them to every future FCA authorisation. Under SM&CR, a firm that fails to prevent a Conduct Rules breach by a Senior Manager — including conduct rule 1 (act with integrity) violations — faces accountability questions of its own. The FCA's thematic work on non-financial misconduct has made clear that harassment, bullying, and discriminatory conduct are conduct risk issues that bear on a firm's fitness and propriety assessment. Firms that wait for an incident to discover their policy is inadequate — that it doesn't cover digital harassment, doesn't address third-party perpetrators, lacks a proper investigation timeline, or fails to protect against victimisation — find themselves managing an Employment Tribunal, an FCA notification, and a reputational crisis simultaneously. This comprehensive Bullying and Harassment Policy gives FCA-regulated firms a complete Equality Act and SYSC-aligned framework covering every form of prohibited conduct, every protected characteristic, multi-channel harassment, robust reporting channels, investigation procedures, disciplinary sanctions including regulatory consequences, and victim protection — built for firms that understand culture is a regulatory matter.
The employment claim is expensive. The FCA referral is permanent.
What's included: Full regulatory mapping — Equality Act 2010 ss26-27 (harassment definition: unwanted conduct/purpose or effect test/victim's reasonable perception/three categories: related harassment/sexual harassment/less favourable treatment for submission or rejection) and s27 (victimisation: protected acts including good faith complaints/witness evidence/colleague support), Health and Safety at Work etc. Act 1974, Employment Rights Act 1996, Protection from Harassment Act 1997, Human Rights Act 1998, SYSC 3A.2.1R (adequate policies and procedures), SYSC 5.1.1R (employment and remuneration practices), SYSC 22 (regulatory references), SM&CR Individual Conduct Rule 1 (integrity), FCA Principles for Businesses PRIN 6 (customers' interests) and PRIN 8 (conflicts of interest) · Nine protected characteristics framework — Age/Disability (substantial and long-term adverse effect)/Gender Reassignment/Marriage and Civil Partnership/Pregnancy and Maternity/Race (colour/nationality/ethnic or national origins)/Religion or Belief (including lack of belief)/Sex/Sexual Orientation — plus harassment by association (related to third parties with characteristic) and harassment by perception (perceived possession regardless of accuracy) and intersectionality (multiple simultaneous characteristics) · Six-channel harassment taxonomy — Face-to-Face (verbal abuse/physical intimidation/persistent unwanted attention/exclusion), Electronic and Digital (all electronic mediums), Telephone (repeated calls/verbal abuse/voicemail misuse/conference call humiliation), Email and Written (offensive content/mass distribution/forwarding private information without consent), Social Media and Online (fake profiles/cyberstalking/impersonation/online monitoring), Technology-Facilitated (unauthorised recording/surveillance misuse/collaboration tool misuse) · Single incident harassment — explicitly addressed: one incident if sufficiently serious · Investigation timeline — 2 working day initial assessment/5 working day commencement/15 working day evidence gathering/20 working day report/25 working day final determination — with external investigator provision for senior management allegations or conflicts of interest · Disciplinary sanctions ladder — verbal warning/first written/final written/demotion or transfer/suspension without pay/dismissal with notice/summary dismissal for gross misconduct — with explicit gross misconduct examples: physical assault/sexual harassment or assault/persistent harassment post-warning/seriously hostile environment/deliberate victimisation · Regulatory consequences framework — withdrawal of regulatory approval or certification/FCA fitness and propriety referral/regulatory body notification/regulatory reference implications (SYSC 22) — explicitly mapped to SM&CR controlled and certification function holders · Victim protection — Section 27 Equality Act victimisation prohibition/immediate protective measures: working arrangement adjustment/reporting line modification/no-contact directives/24/7 EAP access (including immediate family)/occupational health/reasonable adjustments framework/ongoing welfare monitoring · Reporting channels matrix — direct line manager/HR/senior management/anonymous hotline or portal/employee representatives/external channels — with explicit provision for cases where line manager or HR is the alleged perpetrator · Four-level responsibility framework — employees/managers and supervisors/senior management and leadership/firm institutional responsibilities — with named duties at each level · Monitoring framework — incident data (complaint volumes/nature/demographics/outcomes/timescales/disciplinary effectiveness)/quarterly compliance reporting to Senior Management/annual staff culture survey/exit interview analysis/pulse surveys · Annual policy review by SMF compliance holder with Board approval for material amendments
Built for: Compliance Officers, HR Directors, SMF16 holders, and senior management at FCA-regulated firms who need a complete Equality Act 2010 and SYSC-aligned Bullying and Harassment Policy that addresses every form of prohibited conduct, protects the firm against both Employment Tribunal and regulatory exposure, and demonstrates to the FCA that workplace conduct is managed as a conduct risk matter.
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