Proactive Investors - Britain’s Financial Conduct Authority (FCA) is taking a stand against workplace misconduct in the finance industry, particularly focusing on making it a safer environment for women.
Planning to strengthen its 'fit and proper persons' test, the City regulator is targeting, through its new consultation paper, both wrongdoers and regulated firms that may not have adequately penalised offenders.
Following numerous sexual harassment allegations in the City Of London, including accusations against hedge fund tycoon Crispin Odey, the FCA has been forced to implement changes after a series of concerns were raised, including the MPs from the Treasury select committee expressing concerns about the regulator's supervision of the disgraced asset manager and his firm.
Proposed rule changes are expected to raise questions about the effectiveness of the previous regulatory regime and new support aims to include guidelines on how individuals working in the City can be removed from the industry if they fail to meet the FCA's 'fit and proper' test, even for non-financial misconduct offences.
Many professionals and firms in the financial sector require FCA authorisation to conduct business.
Nikhil Rathi, chief executive of the FCA, told the Sunday Telegraph in an interview: “Financial services workplaces need to be safe places for women.
“Companies that do not have an environment where serious issues like that are dealt with and addressed are unlikely to be companies that have an environment which is healthy from a risk management perspective. We want to make sure that we are proactive around that.”