Navigating employment law disciplinary processes can be complicated at the best of times.

However those employing staff in this regulated sector must also fulfil their notification and reporting obligations to the Financial Conduct Authority (FCA) and/or Prudential regulation Authority (PRA).

Unlike other sectors there are obligations to the FCA where certain action such as a suspension is taken with specific forms to complete and time frames to act within.

FCA regulated firms need to understand what type of misconduct might trigger a regulatory reporting obligation, how and when to conduct a disciplinary meeting and how to manage agreed exits and regulatory references.


An FCA regulated business should secure references for regulated employee’s going back 6 years. This could mean requesting references from more than one employer regardless of whether the previous employer is regulated or outside the UK.

Unlike many other sectors a regulated business cannot simply offer a standard ‘factual reference’ and must provide:

  • details of any certification function, SMF, notified NED or credit union NED role performed by the individual, and summary of what the role involved;
  • details of any other roles performed at the firm or at any firms within the same group, in the last six years;
  • where the firm has concluded at any point in the six years prior to a reference request that the candidate breached any of the FCA or PRA conduct rules, or a conduct standard that they were required to observe, and the facts that led the firm to that conclusion;
  • confirmation if the individual was held not fit and proper to perform a function and the facts that led the firm to that conclusion; and
  • details of the basis and outcome of any disciplinary action as a result of the previous two points.

For further information on the above or help with any other employment law matter please contact Kalpesh Nakeshree on York 01904 716000 or email