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“The FCA must have seen something nasty to come out with this statement,” said compliance consultant Branko Bjelobaba.

New obligations on firms to keep disciplinary reports for as long as six years means that failures to tackle non-financial misconduct will have implications for senior managers’ future prospects, he said: “Individual behaviour is so much more important than it ever has been.”

The FCA identifies lack of diversity and inclusion, together with non-financial misconduct, as obstacles to creating an environment in which it is safe to speak up, with consequences on retaining talent. Bjelobaba agreed with the FCA’s contention that a more professional approach pays off. He said: “The quality of business that emanates from professional insurance brokers is much better.”

The new regime means human resources professionals, traditionally not prominent within insurance broking, will become more important figures, said the senior compliance source, saying: “Compliance officers often now sit on boards. The same may happen with HR.”