FCA non-financial misconduct rules reach non-bank firms on 1 September 2026

On 1 September 2026 the FCA conduct rules on serious non-financial misconduct extend from banks to all non-bank SMCR firms. Conduct that sat outside the rulebook for those firms comes inside it on that date.

Three duties travel with the extension: notification, fitness and propriety, and regulatory references. Each one turns on how the firm records and reports what it has found. The extension names the rulebook that the conduct falls under, so the change is one of scope rather than of standard.

Non-bank SMCR firms, around 37,000 of them

Around 37,000 FCA-regulated non-bank firms, including small advisers and brokers. A two-person advisory firm inside SMCR is caught on the same terms as a national broker.

Preparing the firm for 1 September

• Confirm whether your firm is an SMCR firm, which is what brings the extended rules across.
• Map your existing conduct rules material against serious non-financial misconduct.
• Set the route by which a finding reaches the FCA under the notification duty.
• Bring fitness and propriety assessments and regulatory references into line with the extended scope.
• Record who inside the firm owns each of the three duties.

Where the FSMA 2023 system fits

The FCA rulebook sits under the UK financial services regime that this system covers.

Verified 19 August 2026.

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