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URGENT — DEADLINE 1 SEPTEMBER 2026
FCA Non-Financial Misconduct: Board Policy Pack
September 2026 Compliance Deadline | NEDs | Audit Committee Chairs | General Counsel
Formal FCA rules on Non-Financial Misconduct take effect 1 September 2026. FCA/PRA-regulated boards must have a compliant NFM policy and updated Fit and Proper assessment process in place before that date.
What This Pack Contains
- Executive summary of the FCA NFM rules and the 1 September 2026 deadline
- Full Non-Financial Misconduct board policy template (ready to adopt)
- 8-step NFM escalation and investigation framework
- Fit and Proper assessment update — how NFM integrates with SMCR certification
- Board-level oversight checklist
- 10 board questions for the September 2026 board agenda
- Key regulatory references (FCA PS25/5, CP24/2, CP23/20, SYSC 5.1)
The Regulatory Background
The FCA published its final rules on Non-Financial Misconduct in Policy Statement PS25/5 (February 2025). The rules formally incorporate NFM — bullying, harassment, victimisation, and discrimination — into the SMCR Fit and Proper framework under SYSC 5.1 and the relevant Conduct Rules.
The core change is that from 1 September 2026, regulated firms must take NFM into account when assessing whether Senior Managers and Certified Persons are fit and proper to perform their functions. This is not just a policy matter — it is a regulatory requirement with supervisory consequences.
What the Rules Require
- NFM must be considered as part of annual certification assessments under SMCR
- Regulatory references must disclose upheld NFM findings for departing staff
- Firms must have documented processes for investigating NFM allegations
- The board must satisfy itself that the firm has adequate oversight of NFM risk
- HR and Compliance functions must work together on NFM triage and escalation
The NFM Policy Template
The pack includes a full board-ready NFM policy template covering:
| Policy Section | What It Covers |
|---|---|
| Scope and Definitions | Who the policy applies to; definition of NFM categories |
| Reporting Channels | Confidential reporting mechanism; whistleblowing protections |
| Triage and Escalation | 8-step escalation framework from initial report through to regulatory reference decision |
| Investigation Standards | Independence requirements; timelines; documentation standards |
| Fit and Proper Consequences | How NFM investigation outcomes integrate with annual F&P certification |
| Board Oversight | Quarterly NFM reporting to Risk/Audit Committee; annual board review |
| Regulatory Reference Obligations | s.63ZA FSMA obligations; what must be disclosed and when |
10 Board Questions for September 2026
- Has the board formally approved a Non-Financial Misconduct policy that meets the FCA’s September 2026 requirements?
- Does our NFM policy cover all required categories — bullying, harassment, victimisation, discrimination, and sexual misconduct?
- What confidential reporting channel do we have for NFM allegations, and is it communicated to all staff?
- How many NFM allegations have been reported in the last 12 months, and what were the outcomes?
- How does an upheld NFM finding feed into the annual Fit and Proper certification process?
- Have we updated our regulatory reference process to disclose material NFM findings for departing staff?
- What training have our Senior Managers and Certified Persons received on NFM obligations?
- Is our investigation process sufficiently independent — particularly where the subject is a Senior Manager?
- What escalation triggers exist for board-level notification of NFM allegations?
- Has our General Counsel confirmed that our current process meets the September 2026 requirements?
This pack is included in the INFORMD Executive Team plan (£299/month) and available as a standalone download. Contact us for enterprise or multi-firm access.