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Discipline and dismissal: financial services

Updating authors: Nick Thorpe
Consultant editor: Michael Sholem, Macfarlanes


  • Disciplinary action, including dismissal, against individuals in regulated firms is subject to the normal minimum standards under general employment law principles.
  • Dismissal or disciplinary action against a person performing a senior management function may trigger requirements to notify the Financial Conduct Authority (FCA) and/or the Prudential Regulation Authority (PRA). 
  • An investigation into an individual's conduct may need to be disclosed by the firm to the FCA and/or the PRA.
  • If potential misconduct by an individual has been identified, FCA- and PRA-regulated firms should consider whether it is appropriate to remove the individual from carrying out their role while an investigation takes place. 
  • The FCA and/or PRA may choose to launch its own investigation into an individual's misconduct or they may require the firm to investigate and report back. 
  • It is important not to assume that any breach of the FCA and/or PRA rules or Principles will automatically justify dismissal. 
  • An individual may decide to resign or seek to negotiate an agreed exit to avoid an investigation and potential dismissal.