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The Financial Conduct Authority (FCA) has extended rules on bullying, harassment and violence in an effort to "deepen trust in financial services." Clarifying its remit around "non-financial misconduct" in the sector, the FCA said that while it has often been unclear when bullying and harassment would amount to a breach of conduct rules in firms other than banks, the rules will be extended to around 37,000 other regulated firms as of September 2026, "increasing consistency across financial services." A recent FCA survey revealed a 67% increase in reports of non-financial misconduct, rising from 4.2 incidents per 1,000 employees in 2021 to 7.2 in 2023. Sarah Pritchard, the FCA’s deputy chief executive, said: "Too often when we see problems in the market, there are cultural failings in firms," adding: "Behaviour like bullying or harassment going unchallenged is one of the reddest flags." She added: "A culture where this occurs can raise questions about a firm’s decision making and risk management." 

 

Financial Times

Reuters

The Times

The Guardian

Cybersecurity’s Crystal Ball: 10 Predictions You Can’t Afford to Miss

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Energy watchdog Ofgem has initiated an enforcement investigation into National Grid Electricity Transmission following a report that linked a fire which caused the shutdown of Heathrow Airport to a preventable technical fault. The National Energy System Operator report revealed that an "elevated moisture reading" in oil samples at a substation was ignored, leading to a "catastrophic failure" of a transformer. Heathrow's internal power network was also found to be inadequately designed, contributing to the operational shutdown. The incident, in March, disrupted over 270,000 air passenger journeys and left 71,655 customers without power. 

 

The Times

The Guardian

The Independent

EY is facing penalties over breaching independence rules that limit how long a partner can lead an audit. The Big Four firm failed to realise that one of its senior partners had been leading its audits of energy firm Shell for longer than regulators allow. EY told Shell that Gary Donald had "exceeded the period allowed under partner rotation rules" set out by the Financial Reporting Council (FRC), and its US counterpart, the Securities and Exchange Commission. Mr Donald should not have signed off the 2023 and 2024 accounts and Shell has now had to republish its annual reports in the US for those years. It is noted that the EY partner selected to oversee the resubmitted accounts did not make any changes to the financial statements or the audit opinion. EY said it "deeply regrets that this occurred and has remediated the matter." An FRC spokesman said the regulator, which fined KPMG for breaching the same rules in June, is aware of and reviewing the matter.

 

Financial Times

The Times

City AM

KPMG stood down as the auditor for Prax Group, the parent company of one of the UK's largest oil refineries, in the year before it collapsed. Prax was unable to sign up another Big Four accounting firm when it switched auditor last year, and instead appointed PKF Littlejohn. Meanwhile, the government has written to the Insolvency Service to demand an investigation into the conduct of the executives in charge of the oil refinery before its sudden collapse.

 

The Times

The Times

Worldline, the French payments company, has engaged auditing firm Accuracy to evaluate its portfolio of merchants involved in risky activities. The decision follows allegations that Worldline concealed client fraud to safeguard its revenue. Additionally, Belgian prosecutors have initiated an investigation into possible money laundering at its Belgian unit. In response, Worldline has enhanced its merchant risk controls and severed ties with non-compliant clients.

 

Yahoo

In an open letter, the heads of 44 large European companies have called on European Commission President Usula von der Leyen to introduce a two-year pause on the AI Act. 

 

Financial Times

Revolut, Atom Bank and OakNorth are among companies considering joining the new Pisces private stock market. They were part of a group of around two dozen businesses that attended a private conference hosted by London Stock Exchange chief executive Julia Hoggett. The Financial Conduct Authority published the rulebook for the Pisces market in June.

 

City AM

German medical technology company Brainlab has postponed its planned stock market listing just two days before its scheduled debut. “An IPO at a later time remains under consideration,” a statement said.

 

Financial Times

NHS patients across the UK are to get accelerated access to cutting edge technology through a new digital system that will cut red tape and boost life science. A new ‘innovator passport’ – to be introduced over next two years – will allow new technology that has been robustly assessed by one NHS organisation to be easily rolled out to others. The new passport will eliminate multiple compliance assessments, reducing duplication across the health service. It will be delivered through MedTech Compass, a digital platform developed by DHSC to make effective technologies more visible and widely available.

 

Financial Times

GOV.UK

Stellantis may face factory closures due to potential European Union fines for failing to meet CO2 emission targets, according to the company's Europe chief, Jean-Philippe Imparato. He highlighted that the automaker would need to significantly increase electric vehicle sales or reduce production of internal combustion engine vehicles to avoid penalties that could reach up to €2.5bn within the next few years. Imparato emphasized the urgency for regulatory changes by the end of the year, warning that without them, "we will have to make tough decisions."

 

Reuters

Ministers are to shelve reforms to Companies House that would have required businesses to file their accounts in a more onerous way to avoid increasing the bureaucratic burden on small enterprises.

 

Financial Times

Microsoft has announced a second wave of layoffs, impacting approximately 9,000 employees, or 4% of its workforce, as part of a cost-cutting strategy while investing in artificial intelligence infrastructure. The cuts will affect various teams globally, including sales and the Xbox division. The company aims to streamline processes and reduce management levels to enhance efficiency. Despite pledging $80bn in capital spending for fiscal year 2025, rising AI infrastructure costs are affecting profit margins. Other tech giants including Meta and Google have also announced job cuts to improve efficiency. Meanwhile, Microsoft has asked managers to evaluate employees based on how much they use AI, Business Insider reports. In an email to managers, Julia Liuson, president of the Microsoft division responsible for developer tools including AI coding service GitHub Copilot, wrote: "Just like collaboration, data-driven thinking and effective communication, using AI is no longer optional - it's core to every role and every level." She told managers that AI "should be part of your holistic reflections on an individual's performance and impact."

 

BBC News

Business Insider

Financial Times

The Times

Bumble chief executive Whitney Wolfe Herd has criticised staff for “freaking out” after announcing the online dating company would eliminate more than 160 roles in London, warning that drastic cost-cutting measures were needed as “dating apps are feeling like a thing of the past.” Wolfe Herd said the company's “centre of gravity” would move to the US where the “talent pool is right now.” She said that “London’s not the first choice, that’s the frank reality.”

 

Australian Financial Review

Financial Times

Deutsche Bank is set to launch a digital asset custody service next year, collaborating with Bitpanda and Swiss provider Taurus. The initiative, first announced in 2022, reflects the growing interest of major financial institutions in digital assets, spurred by new regulations in Europe and a supportive environment in the US. The bank is also exploring stablecoins and tokenized deposits, with plans to potentially issue its own token.

 

Luxembourg Times

A battle between ministers and the pharmaceutical industry over drug prices has forced the UK government to delay publication of its long-awaited plan for the life sciences sector.

 

Financial Times

Mark FitzPatrick, chief executive of St James’s Place, talks to the FT about rebuilding the wealth manager's reputation, which has been hit by complaints about poor service and opaque charges.

 

Financial Times