Read PS25/23 (PDF)
What we're changing
We're amending our Code of Conduct (COCON) sourcebook to explain how NFM can be a breach of the conduct rules. This will make it easier for firms to interpret and consistently apply our rules.
We're also explaining how NFM forms part of the Fit and Proper test for Employees and Senior Personnel (FIT).
The guidance is designed to help firms make fair, consistent decisions and take decisive action when standards are breached. This change will help promote healthy and inclusive workplace cultures and deepen trust in financial services, in line with our strategy for 2025 to 2030 (PDF).
Who this is for
This publication applies to all Financial Services and Markets Act 2000 (FSMA) firms with a Part 4A permission, and staff in those firms who are subject to COCON or FIT.
It may also be of interest to other stakeholders, including:
- Regulated firms without a Part 4A permission.
- Industry groups and trade bodies.
- Consumer groups and individual consumers.
- Industry experts and commentators.
Next steps
All firms affected by these changes should familiarise themselves with the new guidance.
The guidance will come into force on 1 September 2026 at the same time as the new rule at COCON 1.1.7FR. See Chapter 2 of CP25/18 (PDF) for more information on the rule.
Background
In September 2023, we published CP23/20 (PDF) on proposals for a new regulatory framework on diversity and inclusion in the financial sector. This included proposals on NFM.
On 12 March 2025, we announced that we have no plans to take this work further, except for our proposals on NFM.
In July 2025, we published CP25/18 (PDF) on tackling NFM in financial services, which changed our rules to better capture NFM in non-banks and consulted on whether extra Handbook guidance was needed.
This policy statement finalises guidance to support firms applying our rules and brings our policy work on NFM to a close. We will now focus on how firms are tackling it in practice.
