Partner Claire Cross comments on the FCA’s new non-financial misconduct rules and the potential risks of employers taking an overly cautious approach to workplace investigations.

Financial firms are clamping down on employee misconduct and reportedly dismissing staff over alleged bullying and harassment, ahead of the implementation of the FCA’s new non-financial misconduct rules on 1st September. The changes bring non-bank firms such as asset managers, hedge funds and insurers into line with rules already in place for banks.

However, some lawyers are concerned that misconduct complaints could be handled too hastily, or that conduct allegations could be used as a pretext for dismissals unrelated to workplace conduct.  Speaking to Reuters, Claire Cross, Partner at Corker Binning, said: “Many employers are likely to reach knee-jerk conclusions in relatively minor cases, often opting to exit individuals ​rather than risk potential criticism from the regulator.”

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