The Financial Conduct Authority (FCA) has dismissed 12 employees over misconduct in the past three years, newly released figures reveal, as the regulator steps up efforts to tackle toxic workplace behaviour in the financial sector.
Data disclosed under the Freedom of Information Act shows that between 2022 and 2024, 38 FCA staff faced disciplinary proceedings. In addition to the 12 dismissals, 26 employees were issued with written warnings — 16 first warnings and 10 final warnings.
The figures come as the City watchdog consults on new rules to align conduct standards across banks and non-bank financial institutions for serious non-financial misconduct (NFM) cases, such as bullying, harassment and violence.
In a foreword to the consultation paper published in July, Sarah Pritchard, the FCA’s deputy chief executive, warned that failure to address workplace misconduct can undermine growth, deter whistleblowing and enable wider financial wrongdoing.
“Failure to tackle toxic behaviours drives away good people, prevents staff from speaking up and undermines performance. It damages growth and enables financial misconduct,” she said.
Pritchard said regulators have a role in preventing so-called “rolling bad apples” — individuals who move between firms without their history of serious misconduct being acted upon or disclosed.
The consultation aims to ensure that cases of serious non-financial misconduct are treated as matters of regulatory concern, with potential consequences for firms’ senior managers if they fail to act.
Commenting on the FOI data, Jason Kurtz, chief executive of software company Basware, said: “Organisations tasked with upholding industry standards cannot afford to compromise when it comes to dealing with incidents of misconduct. With rising levels of financial crime, fraud and risks, enforcing the highest standards of compliance is now a top priority, for watchdogs and businesses alike.”
The FCA’s consultation on non-financial misconduct rules closes later this year, with final policy changes expected to be implemented in 2026.
