The FCA’s new Non-Financial Misconduct (NFM) rules come into force on 1 September 2026, extending requirements beyond banks and applying to approximately 37,000 FCA-regulated firms. The changes are designed to help firms address serious conduct issues and strengthen standards of integrity, accountability and workplace culture across financial services.

For compliance & HR teams, now is the time to review whether your current screening and monitoring processes are fit for purpose.

What is Non-Financial Misconduct?

Non-financial misconduct refers to behaviour that isn’t directly related to financial wrongdoing but may still raise concerns about an individual’s suitability to work in a regulated role.

Examples include:

• Bullying
• Harassment
• Violence
• Discriminatory behaviour

The FCA has clarified that these types of behaviours can be relevant when assessing an individual’s Fitness & Propriety, particularly where concerns arise around integrity, reputation and conduct.

What About Social Media?

One of the most talked-about aspects of the new guidance is the FCA’s confirmation that conduct outside of work may be relevant in certain circumstances.

This means behaviour on personal social media accounts could be considered where it raises legitimate concerns about an individual’s integrity, reputation or suitability for a regulated position. The FCA’s guidance specifically discusses how firms should consider matters involving private life and social media when conducting Fitness & Propriety assessments.

Importantly, the FCA has also stated that firms do not need to routinely monitor employees’ private lives or social media accounts. Any action taken must remain proportionate and comply with privacy, employment and data protection requirements.

What Does This Mean for FCA-Regulated Firms?

In simple terms, firms need to ensure they have appropriate processes in place to identify, assess and manage conduct-related risks throughout the employee lifecycle.

This includes reviewing:

• Pre-employment screening processes
• Fitness & Propriety assessments
• Regulatory reference procedures
• Conduct breach reporting
• Internal misconduct processes
• Ongoing employee screening and monitoring programmes

The FCA has specifically encouraged firms to review these areas before the new rules come into force.

Why Screening Matters More Than Ever

Many FCA-regulated firms are now considering whether their existing vetting programmes provide sufficient visibility of conduct and reputational risks.

Where appropriate and lawful, screening solutions can help your organisation:

• Support Fitness & Propriety assessments
• Identify potential conduct risks before hiring
• Strengthen ongoing governance and oversight
• Support decision-making during misconduct investigations
• Demonstrate a proportionate, risk-based approach to compliance

In particular, targeted social media screening can help firms identify information relevant to integrity, conduct and reputational risk, while avoiding the collection of unnecessary personal information or protected characteristics.

How Vetting.com Can Help

At Vetting.com, we support FCA-regulated firms with a range of specialist screening and compliance solutions, including:

• Pre-employment background screening
• Social media screening
• Ongoing employee screening
• Adverse media checks
• Directorship and financial checks
• Identity verification
• Right to work verification
• FCA Fitness & Propriety support & custom template creation

Whether you’re reviewing your current processes in light of the FCA’s new requirements or looking to enhance your wider compliance framework, our team can help you implement a proportionate and effective screening programme.

Speak to Our Team

If you’d like to discuss the FCA’s new Non-Financial Misconduct requirements, social media screening, ongoing monitoring, or any other FCA compliance checks, we’d be happy to help.

📧 Email: sales@vetting.com
🌐 Website: https://www.vetting.com

Useful FCA Resources

For further guidance, we recommend reviewing the FCA’s official publications:

• FCA: Non-Financial Misconduct in Financial Services
  
• FCA Policy Statement PS25/23: Tackling Non-Financial Misconduct in Financial Services
  

As the September 2026 implementation date approaches, firms should take the opportunity to review their screening and governance frameworks to ensure they remain aligned with evolving FCA expectations and are capable of identifying risks relating to integrity, conduct and reputation.