PIMFA, the trade association representing wealth managers and financial advisers across the UK, today publishes new guidance to help member firms navigate the FCA’s updated Handbook rules on non-financial misconduct. The guide has been developed in partnership with the Chartered Insurance Institute (CII), the Chartered Institute for Securities & Investment (CISI) and law firm Clyde & Co.
Ahead of the new rules coming into force from 1st September 2026, the FCA has formally set out its expectations of both firms and regulated individuals in relation to non-financial misconduct which covers a wide range of behaviour, including harassment, bullying, discrimination, victimisation and the abuse of alcohol or drugs in the workplace. The regulator considers that the unhealthy cultures such behaviour creates can facilitate wider wrongdoing, harming both markets and consumers.
PIMFA has developed the guidance, alongside its partners, to support members in understanding and applying the new rules, which have not been designed as a prescriptive checklist.
The new guidance is designed to address the need from firms to exercise judgement on how best to act in particular circumstances, for example for those operating in difficult grey areas such as the boundary between work and private life, or the relevance of social media activity. The guide explores the legal and regulatory landscape, including how the FCA’s rules interact with obligations under the Equality Act 2010, and sets out the circumstances in which non-financial misconduct may amount to a breach of the Conduct Rules or affect an individual’s fitness and propriety.
The guidance also looks in detail at the role of workplace culture, setting out the drivers of good and bad culture and the practical steps firms can take to foster an environment where people feel able to speak up.
To help firms apply the rules in practice, the guide includes a series of worked scenarios covering situations from social media posts and after-work events through to allegations involving senior staff, alongside a checklist of actions for firms to consider.
Liz Field CEO at PIMFA, said: “In order to create a healthy organisational culture, it takes a values-driven commitment from senior leadership to build trust, create psychological safety and foster an environment in which people can perform and thrive. That is not always easy, and balancing the demands of running a business with taking your people with you is a daily consideration for leaders.
“This guidance gives firms practical support in meeting the FCA’s expectations and, more importantly, in building the kind of workplace cultures our industry should be known for. Promoting the highest standards of conduct, standards with teeth, will help firms develop and sustain healthy, inclusive cultures in a sector that carries significant financial and personal responsibilities.”
Matthew Hill, Chief Executive of the CII, said: “Poor workplace behaviours harm people and damage businesses. High standards build high performance and business success. That’s why the CII is proud to support this guidance. ”
Tracy Vegro, OBE, CEO at CISI said: “Trust in financial services depends not only on technical competence, but also on the standards of behaviour people experience every day. The FCA’s rules on non-financial misconduct are an important step in reinforcing that message: poor conduct, bullying or harassment have no place in a profession built on integrity and public confidence.
“This guidance is designed to help firms apply the FCA’s expectations in practice and exercise professional judgement when difficult issues arise. That matters for consumers, for confidence and trust in UK financial services, and for showing the next generation that this is a sector where high standards matter.”
Chris Holme, Clyde & Co LLP, added: “Ultimately, firms need to be confident not only in identifying and addressing misconduct, but also in fostering cultures where such behaviours are less likely to arise. Our contribution to this resource reflects that focus and supports firms in meeting those expectations.”
NOTES TO EDITORS
Press contact: PIMFA@boldspace.com
About PIMFA
PIMFA (the Personal Investment Management & Financial Advice Association) is the trade association for firms that provide wealth management, investment services, and financial advice and planning to everyone from individuals and families to charities, pension funds, trusts and companies.
The sector currently looks after £1.65 trillion in private savings and investments and employs over 63,000 people.
PIMFA represents both full and associate member firms. Full members provide a range of financial solutions, including wealth management, financial advice and planning, as well as investment and execution services. They assist everyone from individuals and families to charities, pension funds, trusts and companies. Associate members provide professional services to the PIMFA community.
PIMFA leads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena. Our mission is to help create a UK culture of thriving financial health through constructive advocacy, fostering connections, and providing practical support.
PIMFA was established in 2017 as a result of the merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA), which has a history as a trade association dating back to 1991.
Further information can be found at www.pimfa.co.uk
About the Chartered Institute for Securities & Investment
The CISI’s mission is to help members attain, maintain and develop their knowledge and skills and to promote the highest standards of ethics and integrity in the securities and investment profession. Based in the City of London, with origins in the London Stock Exchange, the CISI is a charity with global reach through its representative offices in financial centres such as Colombo, Dubai, Sydney, Dublin, Glasgow, London, Mumbai and Nairobi. We work in close cooperation with regulators, firms and other professional bodies worldwide and over 44,000 examinations were taken in 81 countries in the last twelve months. With 57,000 members in over 100 countries the CISI is the professional body which sets examinations and offers qualifications for those working in or looking to establish a career in financial planning, wealth management and capital markets.
Further information can be found at cisi.org
About the CII
We are a professional body dedicated to building public trust in the insurance and financial planning profession. Our strapline Standards. Professionalism. Trust. embodies our commitment to driving confidence in the power of professional standards: competence, integrity and care for the customer.
We deliver that commitment through relevant learning, insightful leadership and an engaged membership. Our 122,000 members commit to high professional standards by maintaining continuing professional development and adhering to a published ethical code.
Further information can be found at www.cii.co.uk
About Clyde & Co
Clyde & Co is a leading global law firm, helping organisations successfully navigate risk and maximise opportunity in the sectors that underpin global trade and commercial activity and enable global prosperity, namely: insurance, professional services, aviation, marine, construction, energy, and commodities.
Globally integrated, Clyde & Co offers a comprehensive range of contentious and non-contentious legal services and commercially-minded legal advice to businesses operating across the world.
It is committed to operating in a responsible way by progressing towards a workforce that reflects the communities and clients it serves and provides an environment in which everyone can realise their potential, using its legal and professional skills to support its communities through pro bono work, volunteering and charitable partnerships, and minimising the impact it has on the environment including through a commitment to the SBTi Net-Zero standard and the setting of ambitious emissions reduction targets. The firm has 500 partners and 5,500 people overall in over 70 offices and associated offices worldwide.
For more information, please visit https://www.clydeco.com/en