The UK’s Financial Conduct Authority says allegations of workplace bullying, sexual harassment and discrimination are on the rise. 

A survey of more than 1000 financial services businesses found the number of bullying and harassment allegations rose 26% and discrimination 23% over the past three years.

However, more than 60% of reported discrimination incidents and almost half of bullying and harassment cases were not upheld.  

“The industry, co-ordinated by trade associations as appropriate, should reflect on these differing rates and consider whether these are explainable,” the FCA said.  

The survey included Lloyd’s managing agents and London market insurers and intermediaries.

The London market insurers portfolio was the only category in which five or more large businesses, with 250 or more employees, reported no incidents between 2021 and last year. Fewer medium-sized companies of 50-249 employees reported no incidents.  

“We expect firms to have developed a speak-up culture and the right processes to identify non-financial misconduct, including whistleblowing functions,” the FCA said.  

The survey found disciplinary or other action was taken in 43% of cases and some types of reported non-financial misconduct – such as violence, intimidation and sexual harassment – more often resulted in disciplinary action than other types, such as discrimination.  

The FCA says large businesses’ governance and oversight of non-financial misconduct could be falling short of its expectations. 

“Discrimination had the lowest proportion of upheld complaints with action taken, which may reflect the fact that discrimination is sometimes harder to judge than other types of misconduct. Providing guidance to decision-makers may assist in achieving appropriate outcomes.”  

Lloyd’s is consulting the market on changes to its approach to poor conduct, and it runs a Speak Up campaign. 

CEO John Neal says Lloyd’s has maintained a focus on supporting an inclusive, high-performing culture since 2019, and it “will remain one of our top strategic priorities”. 

See the findings here.