The Work Couch: Non-financial misconduct, regulation and the law (Part 1): What’s on the horizon for 2026?

Published on 04 March 2026

Welcome to The Work Couch, the podcast where we discuss all things employment.

Later this year, extensive regulatory and legislative reforms will transform how employers tackle bullying, harassment and other toxic behaviour at work. In particular, the Financial Conduct Authority has now finalised its non-financial misconduct guidance, with significant changes coming into force on 1 September 2026. And alongside that, the Employment Rights Act 2025 will introduce a suite of reforms on 1 October 2026, aimed at strengthening protections against harassment at work and changing how employers approach prevention.

So, to help employers navigate and prepare for the new regime, we're devoting our latest three-part mini-series to the topic of non-financial misconduct or "NFM".

In part one, host Ellie Gelder is joined by Macaela Joyes, Associate in our Employment, Engagement & Equality team and Whitney Simpson, Of Counsel at RPC, who share their insights on:

  • what NFM means and the types of behaviour it includes;
  • why addressing NFM does not rest solely with HR and People teams and the importance of wider accountability across the business;
  • the regulatory and legislative developments coming into effect later this year and how they will impact the approach that firms will need to take when responding to allegations of non-financial misconduct;
  • the nuances of non-financial misconduct that takes place online or outside work; and
  • some key practical steps for firms to take in readiness for the upcoming changes.

Join us for part 2 in two weeks' time, when we will discuss the nuts and bolts of the investigation itself and common pitfalls for employers to be aware of.

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All information is correct at the time of recording. The Work Couch is not a substitute for legal advice.

References

  1. FCA Consultation Paper CP25/18: Tackling non-financial misconduct in financial services Consultation on guidance in the Code of Conduct (COCON) and the Fit and Proper Test for Employees and Senior Personnel (FIT) sourcebooks including Policy Statement on amendment to the Code of Conduct (COCON) (CP23/20) (July 2025)
  2. FCA Policy Statement PS25/23: Tackling non‑financial misconduct in financial services Guidance in the Code of Conduct (COCON) and the Fit and Proper test for Employees and Senior Personnel (FIT) sourcebooks (December 2025)
  3. Employment Rights Act 2025
  4. Higgs v Farmor's School and others [2025] EWCA Civ 109

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