The Financial Times (19 May 2019) has reported that the number of directors being investigated by the FCA has more than doubled in two years with nearly half of those being investigated for failings in culture and governance.
According to the Financial Times, the FCA is investigating 58 directors as at December 2018, compared with 24 in 2016. Of the 58 directors now under investigation, 27 are being investigated for culture and governance failings.
The increase in the number of investigations follows an increase in the number of Whistleblowing complaints that the FCA has received which has seen an increase in complaints about non-financial behaviours including sexual harassment, homophobia and bullying.
The Senior Managers and Certification Regime, to be implemented for all FCA-solo authorised firms in December 2019 could lead to a further increase in the number of investigations.
Focus on ‘non-financial misconduct’ has previously been raised by the FCA with a report on “Sexual Harassment in the Workplace”.