The number of bullying, sexual harassment and discrimination claims at City firms skyrocketed between 2021 and 2023, according to new survey results by the financial watchdog.
The Financial Conduct Authority said its so-called non-financial misconduct survey showed the number of allegations rose by nearly 75% in the three years covered by the survey.
In 2021, firms reported 1,363 complaints, rising to 2,347 in 2023, the watchdog said, a 72% rise. The majority came from wholesale banks.
Bullying and harassment made up 26% of the complaints and discrimination made up 23%.
The FCA said data could be seen in a positive light, that more complaints are an indicator of a culture in which people feel they can speak up, while a low reporting rate could show the opposite.
Chair of the Treasury Committee 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: “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 found some firms were using their internal systems to identify potential issues, but formal processes and whistleblowing were the most prevalent methods of detection.
The findings have been shared to enable firms to benchmark their own reporting against this peer analysis, the watchdog added.
Sarah Pritchard, executive director of markets and international, said: “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.”
