Financial services staff may need to disclose social media profiles as regulator ‘absolutely committed’ to doing more on misconduct

Staff at financial institutions may be asked to disclose all social media profiles can be monitored for behaviour as the Financial Conduct Authority (FCA) focuses on non-financial misconduct increases.

Speaking on Following the Rules podcast, Rob Mason, director at Global Relay and former FCA regulator, explained that the FCA have “absolutely committed” to doing more on non-financial misconduct.

He explained that the FCA has sent a letter out to all the insurers in London, which he added, “is a slightly different approach from… banks and brokers.”

Mason outlined that the insurers have received a letter that seeks them to provide instances of non-financial misconduct over the last three years, what category they are in and what action was taken.

This “may be quite a difficult questionnaire to complete for some of those firms, if they don’t have very much in the way of oversight or supervision in that particular area. So there’s going to be a broadening oversight of this across financial services,” he added.

He said there is a “chance” that this focus from the FCA on non-financial misconduct might encourage financial services firms to ask their regulated employees to enable them to track their communications.

“Would it be such a stretch to see firms requiring individuals to give up their social media, detailed names, handles and contact details,” he stated.

He added: “not necessarily to routinely monitor them, but if there was a trigger for suspicion, they were able to track that and perhaps review it under those circumstances.” He did note that “it might be a long way away.”

“When you go to work in a financial institution, often you’re being compensated quite well. Nobody’s making you go and do that work. And if you’ve got nothing to hide, then you’ve got nothing to hide, but that might just be my personal view,” Mason pointed out.

Susan Thompson, partner at Simkins said the scrutiny from the FCA will lead to an increase of resource time from management and HR departments, who may now wish to monitor employees’ social media accounts.

She added that it’s common for the HR department to screen candidates’ social media profiles. She said that “firms may now need to perform an ongoing review into employees’ social media activity…something that firms are unlikely to be currently doing.”

Natasha Forman, senior associate at Kingsley Napley said: “What individuals do in their personal time is no longer necessarily completely separate from the workplace and an employer may take an interest.

“It is likely to become common for employees to be asked to disclose information to employers about their social media profiles. This is to ensure that employees’ can illustrate acceptable behaviour both in their professional and their private lives,” Thompson explained.

Forman added: “Financial services firms are likely to have internal codes of conduct and disciplinary policies and rules which reflect the standards of behaviour expected of staff in and out of work.”

She outlined that if a person conducts themselves in a way that breaches the employer’s code of conduct during their personal time on social media, this could result in disciplinary action.

Martin Pratt, partner at RWK Goodman added: “Managers and Tribunals have, for over 15 years, reviewed anything posted [online] as potentially reflecting on relevant employers and professions.”

He added: “It’s inevitable that the FCA would take an increasing interest in activity they see as bringing the financial services sector into disrepute.”