The FCA's growing focus on culture, conduct and accountability

Why has culture moved up the regulatory agenda?

On 1 September 2026, the FCA's new non-financial misconduct rules came into force, reinforcing the regulator's expectation that conduct such as bullying, harassment, discrimination and other serious inappropriate behaviours should be considered within a firm's wider conduct, governance and accountability framework.

The FCA has increasingly made clear that behaviour within a firm can be a useful indicator of how that firm is managed, governed and how likely it is to deliver good outcomes for customers and markets. As a result, non-financial misconduct is no longer viewed solely as an employment or HR matter. Instead, it has become a regulatory issue that may be relevant when assessing culture, fitness and propriety, senior management accountability and overall conduct risk.

For boards and senior executives, the question is no longer whether firms have the appropriate policies and procedures in place, but whether they are fostering cultures that support integrity, accountability and appropriate standards of behaviour.
 

What does this mean for firms?

Most regulated firms already have established frameworks covering bullying, harassment, discrimination, whistleblowing and disciplinary matters.

The key question is whether firms can demonstrate that these arrangements operate effectively in practice.

Firms should consider whether:

• Senior management and boards have sufficient visibility of conduct and culture issues

• Conduct risks are incorporated into governance and risk management frameworks

• Concerns can be raised safely and escalated appropriately

• Investigations are conducted consistently and documented effectively

• Fitness and propriety assessments take relevant conduct matters into account

• Training and awareness programmes remain fit for purpose

• HR, compliance and risk functions work together effectively when conduct issues arise

Particular consideration should be given to how misconduct issues are identified, managed and reported, and whether existing governance arrangements provide adequate oversight of emerging conduct risks.

For firms operating under SM&CR, there may also be implications for certification processes, conduct rules assessments, regulatory references and senior management accountability.
 

Our perspective

FCA’s focus on culture and non-financial misconduct has been reinforced by the FCA's recent enforcement action against Crispin Odey, founder and majority owner of Odey Asset Management. On 14 September 2026, the Upper Tribunal upheld the FCA's decision to ban him from the financial services industry, finding that he lacked integrity and had undermined his firm's governance arrangements while facing an internal disciplinary process relating to inappropriate behaviour towards female employees. The Tribunal upheld all five allegations brought by the FCA and upheld the ban, while reducing the financial penalty from £1.83 million to £1.53 million. The case highlights the FCA's willingness to act where misconduct, governance failures and accountability issues intersect, demonstrating that serious misconduct is not simply an employment matter but can have significant regulatory consequences.

The message is clear; firms that continue to treat non-financial misconduct solely as an HR issue may risk overlooking potential regulatory considerations. Conversely, firms that integrate conduct, culture and accountability into their governance frameworks are likely to be better placed to demonstrate effective oversight and meet evolving regulatory expectations.
 

What firms should do now

Rather than waiting for regulatory scrutiny, firms may wish to undertake a targeted review of their existing arrangements and consider whether they remain appropriate in light of evolving expectations.

Areas to review may include:

• Conduct risk frameworks

• Governance and management information

• Board oversight of culture and behaviour

• Fitness and propriety assessment processes

• Whistleblowing and speak-up arrangements

• Investigation and escalation procedures

• Staff training and awareness programmes

• Links between HR, compliance and risk teams
   

How can Ocorian help?

Ocorian supports regulated firms in strengthening governance, conduct and culture frameworks in line with evolving regulatory expectations.

Our support includes:

• Conduct risk reviews

• Governance and accountability assessments

• SM&CR reviews

• Fitness and propriety framework assessments

• Policy and procedure reviews

• Independent assurance and internal audit support

• Board and senior management training

• Gap analyses against evolving regulatory expectations

As scrutiny of culture and conduct continues to increase, firms that take a proactive approach will be better placed to demonstrate effective governance, support positive organisational cultures and respond confidently to regulatory challenge.