London market bodies launch misconduct training programme after FCA request

Three London market associations have teamed up to launch a non-financial misconduct (NFM) training programme following a request from the FCA.

The Lloyd’s Market Association (LMA), International Underwriting Association (IUA) and London and International Insurance Brokers’ Association (LIIBA) said the new programme is the first ever joint training programme shared across brokers and underwriters. 

It has been designed to improve workplace culture, governance and compliance and will be delivered in association with compliance consultancy firm Padda Consulting.

The programme consists of a series of six workshops tailored for members of the LMA, IUA and LIIBA. There is also an additional session for independent non-executive directors and non-executive directors of LMA, IUA and LIIBA member firms.

Sheila Cameron, chief executive at the LMA, said: “The NFM workshops are designed to equip key stakeholders across the insurance sector with the knowledge, tools and strategies needed to enhance workplace culture, governance and compliance with FCA expectations.

“Given the importance of multi-functional oversight in managing NFM, these workshops are tailored for professionals responsible for HR, compliance, risk and executive leadership within member firms of the LMA, IUA and LIIBA.”

Rise in incidents

This comes after the FCA requested work be undertaken by trade associations to provide their respective memberships with appropriate support and guidance on NFM.

The request came after data published in October 2024 by the FCA revealed a concerning rise in non-financial misconduct incidents within the London market between 2021 and 2023.

For London market insurers, reports increased from 102 to 239 over the three-year period – as for intermediaries in this sector, allegations rose from 89 to 246 during the same time frame.

The FCA stressed that firms must take NFM, including bullying, harassment and discrimination, as seriously as financial misconduct.

Following the launch of the training programme, Dave Matcham, chief executive at the IUA, said: “The main group of sessions are designed for HR professionals – responsible for overseeing employee conduct policies, workplace culture and grievance handling – and for compliance officers, ensuring that FCA/PRA requirements and whistleblowing regulations are met.

”Finally, they are also appropriate for risk managers, who must incorporate NFM-related risks into the firm’s wider risk frameworks. All of these sessions have the potential to help drive significant improvements in culture and behaviour across our industry, as the FCA intended.”