Alongside the new FCA’s non-financial misconduct rules, which significantly expand conduct standards across the regulated financial services sector, the Employment Rights Act 2025 significantly strengthens employers’ obligations to prevent sexual harassment, including harassment of staff by third parties such as clients, counterparties, and office visitors.
The recent decision in Odey v. Financial Conduct Authority is a stark reminder of the stakes. The Tribunal upheld the FCA's ban on Crispin Odey after he obstructed an internal investigation into harassment allegations, finding he lacked integrity and acted against client interests. For regulated firms, harassment failings are now both an employment and a conduct risk, engaging senior manager accountability and the FCA’s focus on non-financial misconduct.
Ahead of the rules coming into force on 30 October 2026, think now about what evidence you would be able to produce that all reasonable steps were taken to protect employees. Here are our top tips:
- Audit your current anti-harassment policies, risk assessments, and conduct standards across all sites. Maintain a record of that audit.
- Refresh training on third-party harassment and retain dated attendance records (ideally in person training and not just click through session).
- Embed ‘acceptable conduct’ terms into client and supplier contracts.
- Ensure you have clear reporting and escalation routes to an appropriate skilled person to deal with such complaints. Ensure all complaints are logged and acted upon.
- Review your retention policies against the new 6-month Employment Tribunal limitation period.
- Always handle complaints carefully, including any steps taken to protect an affected employee.
- Remind your employees that you take a zero-tolerance approach to harassment in all its forms and that your policies and procedures are kept under regular review to ensure every member of staff is properly supported.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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