Non-Financial Misconduct
Educate staff about the high standards of conduct expected of them in the workplace and in work-related contexts, including the new COCON rule on serious work-related non-financial misconduct.
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Request a demoWhat is non-financial misconduct, and why does it matter?
Non-Financial Misconduct (NFM) encompasses a range of unwelcome behaviours that are clearly not of a financial nature, such as bullying, harassment and violence. The Financial Conduct Authority (FCA) has outlined non-financial misconduct as a clear warning sign of negative culture within financial services providers. Preventing and addressing NFM helps foster healthy and inclusive workplace cultures where employees are empowered to speak up and raise concerns.
Who needs non-financial misconduct training?
All staff. All employees in financial services providers must uphold high standards of behaviour, regardless of their position, because misconduct at any level affects the firm’s culture and its compliance with FCA expectations. SMFs and Certification Staff face high expectations on their conduct at work, in work-related contexts, and in some outside-work situations where the conduct is relevant to fitness and propriety.
What does non-financial misconduct training cover?
The course educates staff about the high standards of conduct expected of them in the workplace and in work-related contexts. It explains when conduct outside work may be relevant to fitness and propriety for SMFs and Certification Staff, and emphasises the importance of exhibiting professionalism and integrity in work-related interactions and business dealings. It is set out in four modules: Behaviour Matters; Recognising and Preventing Workplace Misconduct; Raising Your Concerns; and Conduct of Senior Managers and FIT Responsibilities.
What does the FCA expect on non-financial misconduct?
The FCA has expanded how serious work-related NFM is treated under the Conduct Rules. From 1 September 2026, the new Code of Conduct (COCON) rule, COCON 1.1.7FR, applies in non-banking firms, including insurers, where bullying, harassment or violence against colleagues has a sufficient work-related link. The rule is not retrospective, and it supplements, rather than replaces, the existing Conduct Rules. NFM findings may affect conduct breach reporting, fit and proper (FIT) assessments for senior personnel, and regulatory references, so firms should check whether their policies, conduct breach reporting, FIT assessments and regulatory references need updating for the new NFM rules and guidance.
Learning Objectives
Hover over or select a module to see its learning objectives. After completing each module, learners will be able to:
Module 1
Behaviour Matters
- Recognise how adhering to ethical standards and appropriate conduct can help them maintain their professional standing and avoid disciplinary issues.
- Recognise that following the FCA Conduct Rules, including the new COCON rule on serious work-related non-financial misconduct, supports appropriate behaviour and helps them contribute positively to their firm's culture.
- Identify expected standards of behaviour that they must follow and the consequences of not doing so.
Module 2
Recognising and Preventing Workplace Misconduct
- Recognise that discriminatory, bullying or harassing behaviour will not be tolerated.
- Differentiate between different types of discrimination.
- Identify behaviour that constitutes bullying and harassment, including sexual harassment.
- Recognise their legal right to a safe work environment, free from harassment.
Module 3
Raising Your Concerns
- Identify how to raise concerns about unacceptable behaviour if they see it occurring, or if they are affected by it.
- Recognise that if their conduct falls below expectations, the issue will be addressed with them in a fair and dignified way.
- Identify the benefits of upholding their firm's values, including those around diversity, equity and inclusion.
- Identify cases of victimisation of employees who have raised concerns.
- Recognise the company's disciplinary processes in cases of non-financial misconduct complaints.
Module 4
Conduct of Senior Managers and FIT Responsibilities
- Recognise the standards expected of the Fit and Proper test (FIT).
- Be aware of their obligations under the Conduct Rules for senior managers.
- Recognise the obligations of managers to take reasonable steps to prevent, identify, escalate and respond to non-financial misconduct within their area of responsibility.
What's included
- 25 to 30 minutes across four modules
- Case studies and scenario questions
- A dedicated module for SMFs and Certification Staff
- Audio narration throughout
How it works
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Assign it in seconds
Enrol a team, a role or your whole firm from the CityREPORTS dashboard, with automated reminders that chase completion for you.
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Your team completes it
Learners work through the course at their own pace on any device, finishing with a short assessment that demonstrates understanding.
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Evidence it to the regulator
Every completion is time-stamped and retained, so you can prove the right people did the right training at any moment.
Frequently asked questions
- What is the new COCON rule?
- From 1 September 2026, the new Code of Conduct (COCON) rule, COCON 1.1.7FR, applies in non-banking firms, including insurers, where bullying, harassment or violence against colleagues has a sufficient work-related link. It can apply even if the behaviour is not part of someone's day-to-day duties. The rule is not retrospective, and it supplements, rather than replaces, the existing Conduct Rules. The FCA finalised its guidance on the rule in Policy Statement PS25/23 in December 2025.
- Which firms and staff does it apply to?
- The rule and guidance apply to all FCA-authorised firms with Part 4A permission, both banks and non-banks. The Individual Conduct Rules apply broadly across FCA-regulated firms, including to SMFs, Certification Staff and most other employees, but not to certain ancillary roles. PRA-regulated firms should also consider the guidance when assessing fitness and propriety.
- Can conduct outside work be relevant?
- Yes, in some situations. An employee's behaviour at work, in work-related settings, and in some situations outside work can affect the firm and their role. For SMFs and Certification Staff, conduct outside work may be considered under FIT if it raises concerns about honesty, integrity, reputation, competence or financial soundness. Firms are not expected to investigate trivial, implausible or speculative allegations.
- What must managers do about non-financial misconduct?
- Managers are required to take reasonable steps to prevent, identify, escalate and respond to non-financial misconduct within their area of responsibility. They are expected to act when concerns are raised, even where no formal complaint has been made, and what is reasonable will depend on their role, authority, knowledge and the facts of the situation. Managers will not be held responsible where they could not reasonably have known about the misconduct or lacked authority to act.
Related courses
Senior Managers & Certification Regime (FCA Conduct Rules)
SM&CR training for UK firms covering individual accountability, the Conduct Rules and reasonable steps, helping staff meet FCA and PRA expectations.
Anti-Harassment & Inclusion
Support a respectful, inclusive workplace and explain responsibilities under the Worker Protection Act and the FCA's focus on non-financial misconduct.
Whistleblowing
Build confidence in speaking up, explain the firm's whistleblowing arrangements and the legal protections available to those who raise concerns.