FCA survey reveals alarming rise in workplace harassment and bullying

• Increase in Whistleblower Reports: Over 1,000 firms reported a surge in whistleblower allegations between 2021 and 2023, with 26% of these complaints specifically related to bullying and harassment.
• Tripling of Sexual Harassment Reports: Data from Fox & Partners indicates that whistleblower reports regarding sexual harassment in financial services firms rose dramatically, from 12 in 2022 to 32 in 2023.

Ivor Adair (pictured), Partner at Fox & Partners, remarked on the findings, stating, “The increase in complaints demonstrates that financial services firms are struggling to root out inappropriate behavior. Our experiences suggest that individuals in the sector are becoming more comfortable exposing and reporting bullying and harassment.”

Adair emphasised the need for financial firms to foster a culture that encourages early reporting of inappropriate conduct and protects individuals from retaliation. “What is acceptable in the workplace and what is expected from employers has changed substantially in recent years,” he added, highlighting the upcoming positive duty for firms to take “reasonable steps” to prevent sexual harassment.

The new Employment Rights Bill reforms will expand the obligation for firms to take “all reasonable steps” to prevent harassment, increasing pressure on financial services to demonstrate compliance and improve workplace culture. Adair noted, “Investors are increasingly paying close attention to the corporate culture of financial services firms, treating reports of bullying and harassment as indicators of poor governance.”