Sexual harassment and bullying claims soar at City firms, new survey finds

Cases of bullying, sexual harassment and discrimination at City firms have soared between 2021 and 2023, according to a new survey by the Financial Conduct Authority (FCA).

The watchdog's non-financial misconduct survey revealed a nearly 75% increase in complaints over the three-year period. In 2021, firms reported 1,363 complaints, which escalated to 2,347 in 2023, marking a 72% rise.

Most of these complaints originated from wholesale banks, with bullying and harassment accounting for 26% and discrimination making up 23%.

The FCA suggested that the surge in complaints could be viewed positively, indicating a culture where individuals feel empowered to speak out. Conversely, a low reporting rate might suggest the opposite.

Treasury Committee Chair Meg Hillier said: "During the last parliament, previous members of the Treasury Committee found a shocking prevalence of sexual harassment and bullying in the finance sector, and a culture which is holding back women.

Dame Meg added: " Dame Meg further added: "On the surface, these latest findings seem to show that far from the City dealing with these issues, it may even be going backwards. As the FCA highlights, it’s possible that the increase in reported incidents is due to changes in how firms report their cases.

"The Treasury Committee which I chair will seek further clarity on this issue when we next invite the regulator to Westminster."

The FCA has discovered that while some firms use internal systems to spot potential issues, formal processes and whistleblowing remain the most common detection methods. The watchdog has shared its findings to help firms compare their reporting with that of their peers.

Sarah Pritchard, executive director of markets and international, commented: "We want this data to support financial firms by providing their management teams and boards with an opportunity to consider if they stand out, and, if so, why that might be.

"The data requires context and careful interpretation. But in being transparent we hope financial firms can benchmark themselves against their peers."

"Healthy workplace cultures are essential across all the markets we regulate – where non-financial misconduct is allowed to persist it can undermine trust and confidence, and create a culture where wrongdoing goes unchallenged, causing harm."

“We are grateful to see a number of trade bodies engaging with these findings. We look forward to continuing to partner with them to continue to raise standards.”