New Sexual Harassment Laws - Financial Services
New sexual harassment laws: Is the financial services sector ready for October 2026?
In the UK, the sexual harassment law will change significantly on 30th October 2026. Financial services firms need to avoid becoming exposed.
From over the counter banking branch staff to one-on-one insurance, financial advice and Fintech meetings, the financial services sector relies on public and private meetings every single day. Every interaction is a potential cause for concern.
From the 30th October 2026, one of the most significant recent reforms to UK employment law in recent times means the financial services sector will see a significant impact on their everyday practices.
Under the new changes, employers will have to take “all reasonable steps” to prevent sexual harassment in the workplace. This wording is a huge step up from the current “reasonable steps”.
In addition, employers could face increased compensation for harassment of their staff by third parties.
As an employer, it will be your responsibility to make sure you don’t miss the deadline. Every financial services practice will need to demonstrate proactive, comprehensive and ongoing prevention methods are in place, rather than taking a reactive response after an incident occurs. Alongside this, liability to protect employees will increase.
So, from customer service teams to client entertainment, how will this actually impact the financial services sector?
New sexual harassment laws present financial services firms with added risk
Financial services is in the spotlight for carrying added risk and there are three standout problem areas:
1. One-on-one, closed-meetings: Financial advice often happens in private settings, so there are no witnesses and little oversight when sexual harassment occurs.
2. An ingrained culture: Power imbalances within the hierarchy, high-pressure target-driven environments and long-standing personal relationships with clients all make employees more reluctant to report an incident.
3. Client entertainment and networking: Corporate events can often take place after-hours and involve alcohol, blurring the boundaries between work and social interactions.
Add in further complications with NDA confidentiality, remote working and multi-jurisdictional operations and it’s clear the risk of sexual harassment claims could come from a huge range of sources.
Getting ahead: How financial services firms can put the required changes into practice
The updated Government guidance isn’t expected until after the change comes into action, so the financial services employers are preparing for standards that are not yet fully defined. But existing guidance from the EHRC provides a minimum standard to implement:
• Policies: Update them, actively communicate them and make them easy for all staff to find.
• Training: Provide meaningful, regular training and specific sessions for management and staff.
• Risk assessment: Identify environmental, cultural and operational risk factors, and make a plan to minimise these risks.
• Reporting channels: Employees must know how to report incidents and feel comfortable doing so.
• Leadership accountability: Managers must be equipped to respond swiftly, appropriately and consistently.
• Culture building: A zero-tolerance approach to sexual harassment to be embedded company wide and clearly communicate expected behaviours.
The new sexual harassment laws don’t just impact client-facing advisors
The change in the law doesn’t just impact client meetings. Back-office teams, IT and support staff and all after-hours interactions are all exposed to the same dynamic just as it will for every sector with regular in person interactions.
Given how fast the landscape is changing, and the uncertainty around specific wording, financial services firms must take specific employment law advice.
We’re here to help
Our employment law team has a wealth of experience within the financial services industry. If you’d like practical guidance, steps to prevent sexual harassment and proactive prevention tips, please contact us here or call us on 0114 266 6660.
