“This letter marks a significant and concrete step in the Financial Conduct Authority’s (“FCA”) emphasis on non-financial misconduct (“NFM”) as a key priority for 2024. It places the burden on firms to provide data to enable the regulator to understand the prevalence of NFM. It may also provide further insight into the stance the FCA may take if its warnings related to its expectations on NFM are not heeded.”
Our partner Tracey Dovaston and counsel Alessia de Quincey share their thoughts with LexisNexis on the Financial Conduct Authority’s compelled information request regarding non-financial misconduct, and what this means for firms.
Propelled by recent high-profile scandals and the parliamentary spotlight on the FCA – in particular the fall of Odey and the Treasury Committee’s “Sexism in the City” inquiry – and building on its Consultation Paper on Diversity &Inclusion in the financial sector of late last year, the regulator is using its statutory powers to compel information under section 165(1) of the Financial Services and Markets Act 2000. On 6 February 2024, the FCA sent a sector-wide information request to the Lloyd’s insurance market regarding non-financial misconduct. Responses are due by 5 March 2024. Similar letters are expected across the regulated financial sector more widely in due course.
Read the full article here.