FCA Employee Handbook - Financial Conduct Authority

December 2013

ContentsClick on a link below to take you to the relevant policy:1. Terms of employment........................................................................................ 4Employee Handbook and Contractual Information ........................................................... 4Basics about Your Employment ..................................................................................... 6Hours of Work Policy ................................................................................................... 82. Absence from Work ........................................................................................... 9Career Leave Policy ..................................................................................................... 9Holiday Policy ........................................................................................................... 13Ownership, updates and query management ................................................................ 18Sickness Absence Policy ............................................................................................ 19Leave for Special Circumstances Policy ........................................................................ 263. Career Development ........................................................................................ 29Career Development Policy ........................................................................................ 29Time off for Corporate Responsibility ........................................................................... 30Sponsored Studies Policy ........................................................................................... 31Time off to Train Policy .............................................................................................. 34Talent Management Policy ......................................................................................... 39Technical Specialist Policy .......................................................................................... 41Technical HoD Policy ................................................................................................. 444. Ensuring Fair Treatment .................................................................................. 46Corporate Responsibility and Inclusion Statement ......................................................... 46Equality of Opportunity Policy ..................................................................................... 47Bullying and Harassment Policy .................................................................................. 50Equality Complaints Procedure ................................................................................... 535. Family Leave ................................................................................................... 59Adoption Policy ......................................................................................................... 59Maternity Policy ........................................................................................................ 70Paternity Leave Policy ............................................................................................... 78Dependant’s Leave Policy ........................................................................................... 86Parental Leave Policy ................................................................................................ 886. Health, Safety & Security ................................................................................ 91Driving at Work Policy ............................................................................................... 91Eye Test Policy ......................................................................................................... 93Health and Safety Policy ............................................................................................ 94Safety when Visiting External Organisations Policy ........................................................ 98Security Policy ......................................................................................................... 101Travel Health Policy ................................................................................................. 1067. Joining the FCA ............................................................................................. 109Recruitment Policy ................................................................................................... 109FCA Employee Handbook 2013 2

Probation Policy ....................................................................................................... 113Relocation Policy ...................................................................................................... 1178. Leaving the FCA............................................................................................. 120Leaving the FCA Policy ............................................................................................. 120Employment References ........................................................................................... 125Redundancy Policy ................................................................................................... 128Redeployment within the FCA Policy ........................................................................... 1349. Pay, Reward & Benefits ................................................................................. 137Travel & Expenses Policy .......................................................................................... 137Give as You Earn Policy ............................................................................................ 149Payment of Salary Policy .......................................................................................... 150Salary & Benefits Policy ............................................................................................ 15210. Performance, Discipline and Grievance ......................................................... 159Disciplinary Procedure .............................................................................................. 159Dismissal Procedure ................................................................................................. 166Grievance Procedure ................................................................................................ 168Performance Management Procedure ......................................................................... 17211. Personal Conduct .......................................................................................... 179Your obligations at the FCA ....................................................................................... 179Prospective Parliamentary Candidates Policy ............................................................... 18512. Security of FCA Assets, Information and Data ............................................... 187Clear Desk Policy ..................................................................................................... 187Employee Information Security Manual ....................................................................... 193Use of FCA information services ................................................................................. 20314. Wellbeing ...................................................................................................... 209Smoking Policy ........................................................................................................ 209Stress Wellbeing Policy ............................................................................................. 212Substance Abuse Policy ............................................................................................ 21515. Working Patterns .......................................................................................... 218Flexible Working Policy ............................................................................................. 218Flexitime Policy ....................................................................................................... 221Homeworking Policy ................................................................................................. 224Part-time Working Policy .......................................................................................... 22916. Whistleblowing ............................................................................................. 231Whistleblowing Policy ............................................................................................... 231FCA Employee Handbook 2013 3

1. Terms of employmentThe policies that form part of this Employee Handbook are developed and agreedthrough the FCA’s Employee Policy Governance Framework. The framework is ownedby the HR Division.HR Policies are accompanied by guidance documents, templates and processes,details of which can be found on the FCA’s intranet site, My FCA Hub (available tointernal employees only.)Employee Handbook and Contractual InformationContractual Information (start)Your Personal Statement sets out some of the terms and conditions of your employment.Taken together, your Personal Statement, sections of this Handbook enclosed in the headings,‘Contractual Information (start)’ / ‘Contractual Information (end)’, and your first FlexibleBenefits Confirmation Statement and thereafter, your most recent Flexible BenefitsConfirmation Statement comprise your Contract of Employment with us, subject to anyamendments that from time to time, the FCA may make. Accordingly, the FCA reserve theright to amend the Contract of Employment of all employees and also to vary it in respect ofindividual employees.The Employee Handbook contains policies and procedures that do not form part of yourContract of Employment and may be replaced, withdrawn or varied by the FCA at any time.This Employee Handbook, together with your Personal Statement constitutes writtenparticulars for the purposes of the Employment Rights Act 1996 (as amended from time totime). Where there is a conflict between your Personal Statement and the EmployeeHandbook, your Personal Statement will prevail.We reserve the right to make non-fundamental changes to the terms and conditions ofemployment enclosed in the headings, ‘Contractual Information (start)’ / ‘ContractualInformation (end)’, in this Handbook from time to time.You will be notified of minor changes of detail by way of a general notice to all employeesaffected by the change and any such changes take effect from the date of the notice. Thechanges will be automatically made to the Intranet Handbook.You will be given not less than one month’s notice in writing of any significant changes whichmay be given by way of an individual notice or a general notice to all employees. Suchchanges will be deemed to be accepted unless you notify us of any objection in writing beforethe expiry of the notice period.The FCA is constantly reviewing its terms and conditions of employment and policies tocompare them with best practice in similar organisations. Appropriate changes may be madeto reflect such best practice.Contractual Information (end)Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementFCA Employee Handbook 2013 4

This is the FCA’s Employee Handbook and Contractual Information Policy as at April 2009.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The policy is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to the HR Helpline onextension 67070.Contractual status of this policyThis policy does form part of your contract of employment.FCA Employee Handbook 2013 5

Basics about Your EmploymentJob titlesThe following generic job titles apply to our staff appointed to jobs at the FCA:Director/Head of Department – Carries responsibility for the executive management of aspecific area of regulation, regulated market or operational area.Manager – Leader of a team responsible for a particular regulatory activity or operationalarea that applies/requires specialist technical knowledge or acquired business experience.Technical Specialist - Carries responsibility for providing expert advice to colleaguesand/or applies knowledge to undertake or manage highly complex tasks and projects. Therole requires in-depth specialist knowledge and experience of the relevant sector orspecialism, which is likely to be particularly valuable or scarce in the market.Associate – Carries responsibility for the execution of delegated tasks in a specific area ofregulation or operational area, using specific technical expertise. The level of exposure andautonomy will vary depending on the experience ofthe Associate.Administrator/ Secretary – Carries responsibility for a diverse range ofadministrative/support duties.Additionally, with line management approval, more descriptive job titles may be used asappropriate, e.g. on business cards.Your job title is stated in your Personal Statement. You may be asked to undertake otherduties as the FCA may from time to time reasonably direct and the precise description andnature of your job may need to be varied occasionally fromtime-to-time.Place of workThe FCA offices are located at:25 The North ColonnadeCanary WharfLondonE14 5HS1 Canada SquareCanary WharfLondonE14Quayside House127 FountainbridgeEdinburghEH3 8DJYour normal place of work will be as notified in your Personal Statement. We may reasonablyrequire you to work in any other FCA offices, any regulated firm or other third party inside theUnited Kingdom.You are not currently required to work outside the United Kingdom except for business trips orother trips in the course of your work. You may be required to make visits to third partiesanywhere in the United Kingdom and there may be times when it is necessary to stay awayovernight. It is a condition of your employment that you undertake these requirements totravel.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementFCA Employee Handbook 2013 6

This is the FCA’s Basics about your employment policy as at April 2009.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The policy is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyContractual information in this policy forms part of your contract of employment.FCA Employee Handbook 2013 7

Hours of Work PolicyContractual Information (start)Unless otherwise stated in your Personal Statement, normal working hours are 35 hours eachweek, Monday to Friday, with one hour each day for lunch. We reserve the right to vary yournormal working hours, if necessary, to fulfil our operational requirements.You may be required to work in excess of your normal working hours. If required, you agree towork in excess of any limit placed on working hours, whether by statute or otherwise (providedin the case of a statutory limit that the requirement is lawful). Any excess hours worked will beunpaid unless you have a specific entitlement to overtime payments, which will be set out inyour Personal Statement.You are required to record your hours of work and notify us of them so that we can complywith our health and safety obligations.If you have to work during your lunchtime, you must take an equivalent break during the day,making arrangements for appropriate cover where necessary. You must take a minimum restperiod of 30 minutes if you have worked continuously for six hours. The law entitles you to adaily rest of 11 consecutive hours and a weekly rest of 24 hours. Except where we maylawfully require you to work during all or part of these rests, you must take them. If as a resultof our work requirements you do not get your full rest entitlements, you will be entitled to anequivalent period of rest.Contractual Information (end)Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Hours of Work Policy as at April 2009.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The policy is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does form part of your contract of employment.FCA Employee Handbook 2013 8

2. Absence from WorkCareer Leave PolicyThe FCA operates a career leave scheme, which can be used for any purpose except taking uppaid employment without the permission of the FCA.This policy has been developed as part of our commitment to be a flexible employer and as amethod of helping us to retain valued employees.PrinciplesWhat you can expect from the FCATo accommodate your plans for career leave wherever possible, but subject to theoperational needs of the business area.What the FCA expects of youYou will give your line manager suitable notice of your career leave request.You will follow the process as set out in this policy and within the Unpaid Leave Absencerecord via Employee Self-Service on Chrysalis.The policyOur career leave scheme gives you the opportunity to apply for between 10 and 52 weeksunpaid leave providing you meet the eligibility criteria.If approved, career leave can be used for any purpose, except taking up paid employmentwithout the permission of the FCA.Eligibility criteriaEmployees must meet the following criteria before being eligible to apply forcareer leave.You must have three or more years’ satisfactory continuous service within the FCA.You must not have a current warning under either the Disciplinary or the PerformanceManagement Procedure.Your last two appraisal ratings must have been a two or above.You must have completed three years’ continuous service after returning from anyprevious period of career leave.You must not have taken a period of longer holidays (as defined in the Holiday Policy)within the last 12 months.Please note that entitlement to career leave does not aggregate; for example, if you have hadeight years of service and have not taken career leave within this time, you will still only beentitled to one period of leave.Terms and conditions of the schemeDurationYou can take between 10 and 52 weeks unpaid career leave.FCA Employee Handbook 2013 9

You must take the leave in one continuous block.Career leave can be combined with either holiday or parental leave, but the total timeaway from work must not exceed 52 weeks.Pay and benefitsAll career leave will be unpaid. You will receive no salary or ‘flex’ account.If you are a member of the FSA Pension Plan, contributions will not be paid for theduration of the career leave in advance.You will have no entitlement to either core or flexible benefits for the period of the careerleave, with the exception of the following:Core Life Assurance.Death in service benefits associated with being a member of the FSA Pension Plan,i.e. dependants’ pension (if applicable).It may be possible to maintain private medical cover, by agreeing to pay thepremiums for the duration of career leave.Payment of any of the above benefits will be calculated on the basis of your basic salary atthe commencement of your career leave.Any outstanding season ticket loan or other payments owing will be deducted from yourfinal salary payment before commencement of career leave.You will be eligible for consideration for salary review and an annual individual incentiveaward while on career leave. Any salary increase will be deferred until the end of yourleave and any annual individual incentive award payment will be pro-rated by the numberof working days (out of 260) that you spent on career leave during the annual individualincentive award period.You will not be entitled to occupational sick pay for the duration of the career leave. If youqualify, you will be entitled to Statutory Sick Pay.Please note that any qualifying periods associated with selected benefits may need to berestarted following career leave.It is your responsibility to ensure that in absence of these benefits you areadequately protected.Contractual Information (start)During the career leave, you will remain an employee of the FCA and will be under its termsand conditions, including standards of conduct and behaviour, the FCA Code of Conduct,security, compliance and all confidentiality requirements.While on career leave you are not permitted to take up any paid employment without theexpress written permission of the FCA. To do so, will be regarded as gross misconduct andmay lead to your dismissal from the FCA.During your career leave, your service will be regarded as continuous (for employmentpurposes).Contractual Information (end)FCA Employee Handbook 2013 10

If, during the period of your career leave, there is a business restructure within the FCA, youwill be included. If your role is made redundant while on career leave you will be subject to theFCA’s Redundancy Policy. Any redundancy payment will be calculated on the basis of yourbasic salary at the commencement of your career leave.If you become pregnant while on career leave you must notify the HR Helpline, in writing,before the start of your maternity leave, but preferably sooner. Your career leave willautomatically end when you decide to commence your maternity leave.Please note that your entitlement to Statutory Maternity Pay is based on your average pay inthe eight weeks prior to your qualifying week (15 weeks before the expected date of yourbaby’s birth). If your average earnings over this eight-week period are less than the lowerearnings limit for National Insurance Contributions, you will not be entitled to StatutoryMaternity Pay nor to receive the maternity bonus and enhanced FCA maternity pay.If you are taking a period of Additional Paternity Leave or Adoption Leave before the end ofyour career leave, you must inform the HR Helpline in writing before the leave starts. Yourcareer leave will automatically end when you decide to commence your period of AdditionalPaternity Leave or Adoption Leave.Return to work after career leaveYou will where possible, return to the same or a similar job in the same Division as the onethat you left.The terms of the job, where possible, will be no less favourable than the job that you left.However, if there is a business restructure while you are on career leave, you will be included.Further details on this are provided above.Failure to return from career leaveIf you fail to return from career leave on the pre-arranged date, this will be considered to beunauthorised absence and could result in disciplinary action up to and including your dismissalfrom the FCA (see the Disciplinary Procedure).ProcessRequests for career leave should be discussed with your line manager. If your line manager ishappy with your request, you should raise an Unpaid Career Leave Absence record viaEmployee Self-service on Chrysalis.All applications must be signed off by your Director (or Managing Director for Heads ofDepartment and above) and a commitment must be made at this time by your line managerand/or Director that, where possible, a role will be available for you in the Division on yourreturn. If no such commitment is given then your application for career leave will not beagreed.You should usually make a request for career leave at least three months in advance of thedate that you wish the leave to commence. There will, however, be exceptions to this and youshould discuss situations where you need the leave more quickly than this with your linemanager.Approval is at the discretion of line management and may be refused, or the timing deferred,for reasons of operational need.A letter will be issued to you that will outline the terms and conditions of the career break. Youshould read this letter carefully and address any questions to * HR Helpline before signing toagree the terms.FCA Employee Handbook 2013 11

During the career leave your line manager and the HR Helpline will be the initial points ofcontact for all matters regarding career leave or your employment with the FCA. Before you goon career leave, you must provide up-to-date contact details to your manager and the HRHelpline and agree how you can be contacted during this period (e.g. by phone, email or inwriting).You will be contacted by your line manager at least four weeks before the end of your careerleave to discuss the arrangements for your return to work.Who is covered by this policy?This policy covers all employees with more than three years’ service.Ownership, updates and query managementThis is the FCA’s Career Leave Policy as at October 2011.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The policy is not contractual and is subject to change, withdrawal or replacement at ourdiscretion of the FCA – any changes will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment, unlessotherwise stated.FCA Employee Handbook 2013 12

Holiday PolicyIt is important for your overall health and wellbeing to have breaks from work. The FCA offersa generous and competitive benefits package. Holidays are one benefit where we can offerchoice and flexibility to employees, by offering a core amount to all staff and allowingemployees to buy additional days to suit their own circumstances.The FCA offers a core basic holiday entitlement, which is the same for all permanentemployees and is currently 23 days per annum (pro-rated for part-time employees) excludingbank holidays. In addition to this, all permanent and fixed-term employees can selectadditional holidays through the Flexible Benefits Plan.PrinciplesWhat you can expect from the FCATo maintain a competitive and equitable core holiday allowance.To allow all permanent and fixed-term employees to purchase additional days (providingthe total for that year does not exceed 38 days, excluding bank holidays).To endeavour to ensure wherever possible that employees are given their preferredrequests for holidays.Managers have a duty of care to employees to ensure that each individual has a balancedwork portfolio that enables them to utilise their holiday entitlement.Managers should encourage employees to take at least their statutory holiday entitlement(20 days excluding bank holidays for full-time employees) within the holiday year, butmake sure their entitlement does not exceed 38 days for that holiday year.What the FCA expects of youTo agree holidays with your line manager, giving as much notice as possible. Any suchnotice must, however, be at least twice the number of days’ leave that you wish to use.To discuss and agree dates with your line manager before making any firm bookings toensure that there is adequate staff coverage.You are responsible for keeping an accurate record of your holiday entitlement (includingholiday carried over from the previous holiday year, core, and holiday bought throughyour flex account, taken and planned holiday). This should be approved by your linemanager through the Chrysalis system at the time of agreement or when an amendmentis made. This will form part of your employment record and must be kept up to date,accurate and made available should your line manager request it.To take at least your statutory holiday entitlement (20 days excluding bank holidays forfull-time employees; pro-rated for part-time employees).You are responsible for managing your holiday entitlement for the year and making sure itdoes not exceed 38 days.To take a period of at least two consecutive working weeks leave per annum.Contractual Information (start)Holiday YearThe FCA’s holiday year runs from 1 June to 31 May.FCA Employee Handbook 2013 13

Normal holiday entitlementIf you are a permanent full-time member of staff, your minimum annual holiday is 23 days(excluding bank and public holidays) (known as core).If you work part-time, your minimum annual holiday is calculated according to the number ofdays/hours you work in proportion to the FCA’s normal working days/hours.Bank and public holidays are in addition to core annual holiday. When you begin work for theFCA you are entitled to normal holiday calculated on a pro rata basis.Under the Flexible Benefits Plan, you may request additional holiday as one of the flexibleoptions.The term ‘holiday’ in this section, unless otherwise stated, refers to the minimum annualholiday entitlement plus any additional days purchased under the Flexible Benefits Plan.If you are participating in the Flexitime Scheme, leave under that scheme does not form partof your holiday entitlement.Statutory entitlement and carry forward of holidayUnder the Working Time Regulations 1998, you must take your statutory annual leave (i.e. forfull-time employees this is 20 of the FCA core days excluding bank holidays; pro-rated forpart-time employees) between 1 June and 31 May each year, as the Regulations do not permitthis part of holiday to be carried over into the next holiday year. Any additional core holiday orannual leave purchased through the Flexible Benefit Scheme can be carried over into the nextholiday year, providing you don’t exceed a total of more than 38 days for that year.Line management will take reasonable measures to ensure that you are not prevented fromdoing so on account of workload. However, in some circumstances, perhaps due to very highvolumes of work, we recognise that it may not always be possible to take all of your holidayentitlement (whether core, flex or carried over from the previous holiday year). This is why weallow you the flexibility to carry forward some of holiday entitlement into the next holiday year,provided that you meet the conditions highlight aboveBoth you and your manager have responsibilities in making sure you are able to take this leaveand do not exceed the maximum allowance in any holiday year.In exceptional circumstances you may be able to take up to 3 days of your next year’s holidayentitlement during the current holiday year but this must be authorised in advance by yourmanager.Approval and special conditionsThe FCA will try to accommodate all reasonable requests for holidays, taking particular care toaccommodate religious events or events of special significance.You must obtain agreement from your line manager before making any holiday arrangements,ensuring that the length of time prior to approval is at least twice the length of time requested,for example 10 days’ notice for a holiday of 5 days, in order for work to be planned effectivelyaround absences.We recommend at least one break of 10 working days should be taken within the holiday year.This applies to full-time and part-time staff. Part-time staff can include non-working dayswithin the ten-day period.FCA Employee Handbook 2013 14

Holidays of up to 15 working days are considered within the standard holiday procedures (seethe “Longer Holidays” section for details of leave over 15 days). Line managers should respondto requests within 2 working days wherever possible.If your manager is unable to approve your request for holiday, they will explain the reasonsbehind their decision (e.g. business reasons, lack of cover for the team) and discuss anyalternative options with you.On joining the FCAIf you join the FCA part way through the holiday year, your entitlement will be pro-rated withinthe initial holiday year.If you join after the 1st working day of the month, you will receive holiday for the month youjoin, plus the core allowance shown above from the 1st of the following month.For example, if you join the FCA on 12th November, your total core allowance will be 12.5days. This is based on receiving 1 day from 12th to 30th November and 10 days from 1stDecember to the end of the following May.See the tables in the holiday section of the Flexible Benefits Handbook for further informationon how to calculate your holiday entitlement.On leaving the FCAIf you resign from the FCA or have been given notice of termination, your holiday entitlementwill be calculated on the basis of the number of completed calendar months of service in yourfinal holiday year. You may be able to take holiday during the notice period provided that theholiday was booked/authorised before the start of the notice period. Other requests to takeaccrued holiday during the notice period will normally be granted but permission may berefused if business needs or other circumstances make the granting of holiday at that timeimpracticable.If on the termination of employment you have not taken your full accrued holiday entitlementsubject as follows, you will be paid for your accrued entitlement up to the date of terminationof your employment. If you have taken more holiday than you are entitled to, we reserve theright to deduct the value of days taken in excess of your accrued entitlement from the finalsalary payment made to you.Holiday entitlement will not continue to accrue during a period of enforced leave of absenceand any untaken holiday entitlement will be deemed to have been taken during such a periodof leave.Fixed Term Contract - On joining the FCAWhen you begin work for the FCA you are entitled to holiday calculated on a pro rata basis bythe number of weeks in your contract. Your core annual holiday allowance is 23 days withbank/public holidays in addition to this:23 days/52 weeks x number of weeks of contract = x days or 0.44 days for every completedworking week.Please note that if you are a part-time employee your core allowance of 23 days will be proratedby the number of days you work in a week. You will also be provided with a pro-ratedbank/public holiday entitlement.Fixed Term Contract - On leaving the FCAFCA Employee Handbook 2013 15

If you are employed on a fixed-term contract and resign, from the FCA or you have been givennotice of termination, your holiday entitlement will be calculated on the basis of the number ofcompleted weeks of service:Holiday paymentHoliday pay will be based on pensionable salary and holiday pay due to you or deducted fromyour final pay will be calculated as follows:If you work every day of the week (Monday to Friday inclusive) on a full-time or part-timebasis, holiday pay is:Pensionable salary/260 x number of untaken days’ entitlement or number of days holidaytaken in excess of holiday entitlement (as the case may be);If you work on some but not all of such working days, regardless of how many hours you arerequired to work on those days, holiday pay is:Pensionable salary/A x number of untaken days holiday entitlement or number of days’ holidaytaken in excess of holiday entitlement (as the case may be)Where A is the number of days per week worked x 52.Payment for untaken leave will only be made if you are leaving the FCA.You are not entitled to holiday pay in respect of accrued untaken holiday which is above thestatutory minimum on termination of employment in the following circumstances:dismissal without notice for gross misconduct or conduct that brings or may bring the FCAinto disrepute;leaving the FCA without giving due notice;for any period of enforced leave of absence following notice (where the entitlement isdeemed to have been taken during the period of enforced leave).Payments for holidays above the statutory minimum can also be made for holidays accruedduring maternity, adoption or additional paternity leave (see the Family Friendly policiesfor further details).Bank/Public holidaysBank/public holidays which fall on normal working days are in addition to holiday entitlementfor full-time staff. There are usually 8 per calendar year, but this does vary.Part-time employeesIf you work on a part-time basis you are entitled to bank and public holidays on a pro ratabasis to reflect the number of days per week which you normally work, regardless of whetheryou work fewer than the normal working hours of any day. Please discuss in advance anyarrangements for bank and public holidays with your line manager and request this absence onEmployee Self-service on Chrysalis.Payment for bank/public holidays to staff on short-term contracts is calculated in the sameway as for permanent full-time and part-time staff.You will not usually be required to work on any bank/public holiday. Where bank/publicholidays fall on days on which you normally work, such days will be taken from your publicholiday entitlement and should be recorded on Employee Self-service on Chrysalis.FCA Employee Handbook 2013 16

If, in the particular holiday year, the number of bank/public holidays which fall on days onwhich you normally work exceeds your bank/public holiday entitlement, you will not be paid forthose days and we reserve the right to deduct that holiday pay from your Adjusted Salary.Alternatively, you may work on another day (provided it is not a bank/public holiday) – usuallyin the same week – or use your annual holiday (core, purchased through your flex account, orcarried over from the previous holiday year).Where, in a particular holiday year, no bank/public holidays fall on days on which you normallywork. You are, therefore, not able to take all of your bank/public holiday entitlement, you areentitled to take your bank/public holiday entitlement on a day or days on which you normallywork. The entitlement must be taken in the relevant holiday year. As with all other holidayrequests, all bank/public holiday entitlement taken on days other than bank/public holidaysmust be approved by your line manager before being taken.Contractual Information (end)Longer holidaysLonger planned absences will require more detailed discussion to ensure that operationalneeds are met; in such requests line managers should respond within five working days. Werecognise that in some situations staff may wish to take a longer period of planned time off butmay not wish to take a career break.Our Longer Holiday process allows staff to submit a request for paid holiday via Employee Selfserviceon Chrysalis, to be approved by their line manager for periods of time of up to 4 weeks(the equivalent of the majority of core and statutory entitlement). This can be supplementedby a further 6 weeks unpaid leave (or a mix of flex holiday/unpaid), allowing up to 10 weeksplanned absence. Any part of this leave that is to be unpaid should be requested via theUnpaid Leave Absence record via Employee Self-service on Chrysalis.The Longer Holiday process is offered as an alternative to the Career Leave Policy and allowsemployees to plan for longer absences without going through the Career Leave route. LongerHolidays are holidays in excess of 15 working days (3 working weeks) and can last up to 10weeks. Career breaks start at 10 weeks and can last for up to 52 weeks. Longer Holidays donot affect your statutory employment rights.You must use 20 of your 23 core days entitlement (for full-time employees) for your LongerHoliday, supplemented by flex holiday/unpaid leave for up to a further 6 weeks. In order toapply, you must meet the following criteria:Eligibility criteria:Employees only;Applications to take longer holidays can be made once every 2 years only (i.e. longerholidays can only be taken every other holiday year).Exceptions:Employees in probation or under notice;Employees with under 12 months service;Anyone who is a rating of ‘1’ in their last performance appraisal;Have returned from career leave in the last 12 months.Please note that you are not able to add on to parental leave, career leave or maternity leave.FCA Employee Handbook 2013 17

Benefits during a period of longer holidaysDuring a period of unpaid leave that is one month or more you will receive no salary or ‘flex’account during the period of your leave. If you take more than one month’s leave you will haveno entitlement to either core or flexible benefits for the period of leave after the first month,with the following exceptions:core life assurance (2x salary); anddeath in service benefits associated with being a member of the FSA Pension Plan i.e.dependants’ pension (if applicable).You should discuss any plans for applying for holiday under this process with your linemanager. With your line manager’s agreement, you will be required to give notice of at leasttwice the amount of time that you wish to use as leave (paid and unpaid). If your line manageragrees to your request, you should submit your request via the Unpaid Leave Absence recordvia Employee Self-service on Chrysalis.Holiday accrual and long-term sickness absenceDue to a change in legislation, a ‘statutory’ amount of holiday accrues while you are on longtermsickness absence, equivalent to 28 days per annum, including bank holidays. You arepermitted to take all or some of this holiday during the period of long-term sickness absence.If you wish to take holiday during this period, please inform your line manager in the usualway, as set out in this policy.Sickness during a planned holidayYou may be eligible for time off in lieu if you are able to provide a fit note to cover your illness,no matter what the duration of the illness. See Sickness Absence Policy for more details.Further guidancePlease read the holiday FAQs on My FCA Hub.Who is covered by this policy?This procedure covers all employees.Ownership, updates and query managementThis is the FCA’s Holiday Policy as at January 2012.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The policy is not contractual and is subject to change at our discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to the HR Helpline onextension 67070.Contractual status of this policyThis policy does not form part of your contract of employment unless otherwise stated.FCA Employee Handbook 2013 18

Sickness Absence PolicyThe FCA is keen to encourage employees to maximise their attendance and performance atwork while recognising that there will be occasions when this is not possible due to absencecaused by sickness or incapacity.This policy covers short-term sickness, extended absence and longer term absence (see theDefinitions section below).The FCA provide a comprehensive range of wellbeing benefits and aim to treat employees whoare sick with dignity and respect, providing support, counselling, tailored rehabilitationprogrammes and (if appropriate and practicable) workplace adjustments that may assist thatindividual to continue productive employment with the FCA.If an employee is frequently and persistently absent, this can have a negative impact on thedelivery of departmental objectives and remaining colleagues who must carry the burden ofextra work. This policy is designed to ensure a balance is struck between ensuring adequatesupport for employees who are ill and the ability to fulfil business obligations.Absence figures in this policy are based on full-time employees. Part-time employeeentitlements and triggers are based on a ‘pro rata’ calculation.PrinciplesWhat you can expect from the FCAThe FCA will take all reasonable steps to ensure a healthy approach to work and workingpractices by providing access to health and fitness benefits, and a variety of workingarrangements, to meet the needs of different staff at various times.We will consider making recommended workplace adjustments to accommodate anyspecific needs caused by a medical condition that an employee may have. Adjustmentsthe FCA may make will follow the advice of an employee’s GP, the FCA’s OccupationalHealth team or other medical practitioner and may include a phased return to work,altered hours, amended duties and/or workplace adaptations.If you are ill and unable to work, the FCA will pay your normal salary, inclusive ofStatutory Sick Pay (where appropriate), for absences up to 65 days in a rolling 12-monthperiod (see the Definitions section for information). If you are still unable to return towork you will be eligible to receive one half of your normal pay for the next 65 days in arolling 12-month period, at which point Occupational Sick Pay (see section on pay andbenefits) will cease. If your illness lasts over 12 months then the full-pay and half-payprovision will be made only once. If you are still unable to work, once you have exhaustedyour entitlement to Occupational Sick Pay, you may be eligible to receive payment underthe terms of the Permanent Health Insurance (PHI) contract.We will notify you if your pay will be affected. For example, if your absence is verging on‘long-term’ (as defined later in this policy), we will inform you of the impact before thechange in pay becoming effective.Your line manager will maintain regular contact with you throughout any period ofabsence. You must cooperate in this process unless we are medically advised to thecontrary. You may also be contacted by a member of the HR Division.If we have concerns about your health we will initiate a case conference involving the HRdepartment, your line manager, and Occupational Health, to determine appropriate stepstowards full rehabilitation.FCA Employee Handbook 2013 19

Absence is regarded as a serious matter. It may affect your remuneration and yourprospects for advancement. Persistent absence will be dealt with promptly, firmly andconsistently and may ultimately result in dismissal.What the FCA expects of youYou must follow the correct procedure when you are unable to attend work dueto sickness.On your first day of absence you must speak to your line manager by 9.30am to reportyour absence.You should ring your line manager (or such other person designated by us if they areunavailable) on each working day of sickness for the first seven days; thereafter youshould expect to have a regular conversation with your line manager or other persondesignated by us, in line with the guidance shown below in this policy. Your sick pay maybe reduced or discontinued if you do not cooperate in this process.For short-term absences lasting up to seven days, including weekends/bank holidays, yourline manager will raise an Open Sickness record on your Chrysalis HR record. They willclose this absence record when you return to work.If you are ill while on annual leave, you may be eligible to have the days reimbursed,providing that you provide a fit note for the duration of the illness (or a letter from amedical practitioner if abroad) and you report sickness in the normal way (i.e. ring yourline manager or other designated individual as referred to above).If your absence lasts for more than seven calendar days, including bank holidays andweekends, your sickness record must be supplemented by a fit note from your GP forabsences in excess of seven days.You must supply a fit note to the HR Helpline on or before the eighth calendar day ofabsence, and thereafter within two days of your previous certificate expiring, otherwise wereserve the right to withhold sick pay and you could be the subject of disciplinary action.You must send the original fit note to the HR Helpline (either via internal/external mail orby hand).A copy of your fit note will be sent to your manager by the HR Helpline if it has beensigned, “may be fit for work”If you believe that your absence is caused by work-related issues or is stress-related, youmust discuss these at the earliest opportunity with your line manager, who will work withyou to find and reduce the cause of your concerns. If you do not do so, your sick pay maybe withheld or reduced. The fact that your illness is or is alleged to be work-related doesnot affect the FCA’s rights in relation to the handling of your absence, up to and includingdismissal.If the fit note from your GP states that you may be fit to work with adjustments, you willtake all reasonable steps necessary to cooperate with the FCA in determining theappropriate adjustments to be made. This may include discussions with your linemanager, HR, Occupational Health or a return visit to your GP to clarify therecommendations.If the FCA decides that the suggested workplace adjustments are not practicable, you willremain on sick leave at least until your current fit note expires.FCA Employee Handbook 2013 20

Whether or not you are actually off sick at the time, you must inform your line manager ifthere is a change in your medical condition or if any of the adjustments put in place foryou by the FCA are proving unsuitable.You must agree to a reasonable request from your line manager to undergo a consultationwith either the FCA’s Occupational Health Adviser (OHA) or Occupational Health Physician(OHP) and/or for a report to be produced by them.What are the responsibilities of line managers?Managers will actively monitor absences within their teams and will raise concerns withthe HR Helpline.If managers have a concern about your absence, they have the discretion to recommendan investigation that might result in the withholding of pay. This would be applied inconjunction with other sanctions, such as those stated in the Disciplinary Procedure, andafter consultations with you and HR. If there is no improvement in persistent absence,managers may take action up to and including dismissal in line with the Disciplinary Policy.Depending on the circumstances, a manager will consider referring you to the OHA or OHPif you have been absent for more than ten days in a rolling 12-month period (seeDefinitions section) or have had more than three absence episodes in a rolling 12-monthperiod, but will also reserve the right to refer you to the OHA/OHP if he or she feels it isappropriate.On receipt of a fit note that states you may be fit for work with adjustments, yourmanager will consult with you, HR and (if the FCA considers it appropriate) the OHA/OHP.This aim is to identify the most suitable approach for both you and the FCA.Managers can request a fit note for any period of absence (i.e. less than seven days);however, this is only likely to be applied if you have had three or more periods of shorttermabsence within a rolling 12-month period. The FCA (relevant business area) will payfor this.Managers will maintain regular contact with employees who are on extended and longtermabsence. For extended absences, managers will ensure weekly contact and for longerterm absence, managers will ensure fortnightly contact as a minimum standard. Contactmay be made by telephone, email, letter or personal visit. Separate arrangements will bemade for those in receipt of Permanent Health Insurance (PHI).Managers are best placed to provide input in relation to the activities an employee actuallycarries out and which adjustments are feasible in relation to their specific role. This isparticularly important where adjustments are to be made as a result of a fit note and/orOHA/OHP advice.DefinitionsSickness absence is defined as a period of time away from the FCA caused by illness, injury orother form of incapacity, which means that an employee is medically unfit for work.Short-term absence: lasting up to seven calendar days (including weekends and publicholidays);Extended absence: lasting between eight days and 65 days of continuous or aggregatedabsence; and Long-term absence is defined as a continuous or aggregated absence of more than 65days.FCA Employee Handbook 2013 21

We have different procedures and levels of intervention for each category of absence. Theseare set out in this policy document, together with any intranet policies or documents.The new Statement of Fitness for Work or “fit note” which replaced doctors’ certificatesfrom 6 April 2010 means that GPs can advise that an employeeis either:Unfit for work; orMay be fit for work - a GP will give this statement if they think that an employee’s healthcondition may allow them to work if the FCA is able to provide suitable support andadjustments. This recommendation is made without necessary knowledge of the FCA’sworking conditions or requirements and so does not bind the FCA in any way.The fit note does not include the option for GPs to advise an employee that they are fully fit forwork. You do not need to be fully fit to return to work nor need to be ‘signed back’ to work bya GP (see section on “Support and adjustments available”).A rolling 12-month period - entitlement to sick pay is calculated on a rolling 12-month basiswhich commences with the first day of each reported sickness absence. The total of anyperiods of absence due to sickness taken within the previous 12-month period is deductedfrom this total to determine the balance of entitlement due. So, how do we do that? We lookback 12 months from the first day of the current period of sickness absence and total thenumber of sick days absent. This is deducted from your occupational sick pay entitlement,leaving the number of occupational sick pay days left at full and half pay going forward.Summary of the Sickness Absence Policy and links to related topicsShort-term absenceThis covers all absences caused by sickness, injury or other incapacity lasting upto seven days. You should call your line manager each day (unless alternative arrangementshave been agreed) before 9.30am should report your (continued) absence. Your line managerwill raise an Open Sickness record on your Chrysalis HR record. They will close this absencerecord when you return to work. Please note, however, that managers can request a fit notefor periods of absence of less than seven days if they have a concern about the frequency ofshort-term absence episodes – this would normally be three or more episodes in a rolling 12-month period. The FCA will pay for any reasonable costs associated with obtaining a fit note inthese instances.Extended absencePeriods of absence over seven calendar days (and up to 65 days’ continuous or aggregatedabsence) fall into the extended absence category. Until agreed otherwise with the linemanager, you should continue to contact and speak to your manager on a daily basis. Fit notesshould be provided throughout the period of absence. You should ensure that you provide acontinuous updated fit note within two days of the expiry of the previous fit note. Dependingon the nature of the absence, the manager may agree to weekly updates during this period.Providing you follow the correct procedures, you would normally expect to continue to receiveyour normal pay (including any SSP entitlement) during this period, providing that yourabsence does not aggregate more than 65 days in a rolling 12-month period.Long-term absenceLong-term absence begins when you have been absent for a period in excess of 65 days. Longtermabsence affects pay. This includes instances when aggregated absence over a rolling 12-month period exceeds 65 days. Fit notes should be provided throughout the period of absence.FCA Employee Handbook 2013 22

You should ensure that you provide an updated fit note within two days of the expiry of theprevious fit note.Line managers will maintain regular contact throughout the period, taking care to bereasonably sensitive to your needs during a period of ill health.Pay and benefits in connection with absencesSick pay falls into two categories – Occupational Sick Pay (OSP) andStatutory Sick Pay (SSP).There is no contractual obligation for the FCA to pay OSP. Employees who fail to follow thereporting and other evidential procedures may forfeit OSP. SSP is paid after three days’absence and continues for 28 weeks (over a three-year period).You will normally receive full pay (comprising a mix of OSP and SSP) for short and extendedabsences of up to 65 days (continuous or aggregated in a 12-month rolling period). Thisapplies to permanent and fixed-term employment contracts, but not to third-party providers ofservice who are not paid through our payroll.Please note that we reserve the right to withdraw OSP in certain circumstances, including butnot limited to the following:Where it has been communicated to you that disciplinary proceedings or performancemanagement has or will commence or where either is ongoing.Where you have not followed the set procedure for reporting absence.Where the absence is the result of elective surgery (excluding IVF).Where you refuse to comply with a request to be examined by the OHA/OHP or medicalconsultant and/or for a report to be prepared.After the giving of notice of termination by you or the FCA.Absences longer than 65 days (continuous or aggregated in a 12-month rolling period) willresult in half normal pay for up to a further 65 days (within a rolling 12-month period).Thereafter eligibility for further pay will be determined following application to thePermanent Health Insurance (PHI) provider if you satisfy the terms of that scheme.The table below outlines payment terms for sickness absence for OSP and SSP depending onthe number of day’s absence you have had within a 12-month rolling period:Length of absenceShort-term:up to sevendaysExtended:eight – 65daysLong-term:66 – 130daysLong-term:more than130 daysPay Full Full Half Nil but mayqualify underPHIHoliday accrual and long-term sickness absence (also noted in the Holiday Policy)Due to a change in legislation, a ‘statutory’ amount of holiday accrues while you are on longtermsickness absence, equivalent to 28 days per annum, including bank holidays. You arepermitted to take all or some of this holiday during the period of long-term sickness absence.FCA Employee Handbook 2013 23

If you wish to take holiday during this period, please inform your line manager in the usualway, as set out in the Holiday Policy.Sickness during a planned holiday (also noted in the Holiday Policy)You may be eligible for time off in lieu if you are able to provide a fit note or other form ofconfirmation from a medical practitioner to cover your illness (for example, if you take ill whileyou are abroad), no matter what the duration of the illness. You must cover any costsassociated with providing a fit note. Without such evidence of your illness, we will not be ableto “reimburse” the days that you lost (see the holiday FAQs on My FCA Hub).Salary and annual individual incentive payment reviewShort-term absences will not normally affect pay and annual individual incentive paymentdecisions unless repeated, although any pay increase and payment of annual individualincentive payment will be deferred until you return to work. Long-term absences will trigger areduction to reflect the actual amount of time at work, and therefore your actual contribution.Absences may affect your promotion prospects.Support and adjustments availableFollowing a period of extended or long-term absence and/or where your GP has signed your fitnote as “May be fit for work”, adjustments may be needed to facilitate your return to work.Those adjustments will be based on the advice and recommendations of your GP or othermedical practitioner in your Fit Note. If we need further guidance in order to carry out any steprecommended by your GP, or your GP has not specified which adjustments to make, we willrefer you to the FCA’s OHA/OHP for further guidance.Adjustments the FCA may make may include a phased return to work, altered hours, amendedduties and/or workplace adaptations, and may involve a temporary or permanent move to aflexible working arrangement. Unless short term (i.e. less than 12 weeks), any limit placed onworking hours may be reflected in an adjustment to salary for so long as that limit remains inplace (see below).The advice given on fit notes is not binding on employers Therefore after discussing the fitnote with you (and where the FCA considers it appropriate) the OHA, the FCA has the right tomake the final decision on the most suitable arrangement for both parties.Rehabilitation programmesFollowing a period of extended or long-term absence, the OHA may prepare a tailoredrehabilitation Programme for up to 12 weeks, in consultation with you, your line manager andwhere appropriate, your GP.If after 12 weeks you are still not making progress towards re-establishing your previous workpattern, discussions will begin with you to renegotiate your contract of employment in order toachieve a more acceptable outcome for you and for the FCA.Pay during a period of rehabilitationYour pay when returning to work on a rehabilitation Programme up until you are back to yournormal working arrangements (normally within 12 weeks) will be as follows:FCA Employee Handbook 2013 24

Your pay immediately beforeyour return to workUp to 17.5 hours (i.e. halfof full-time contractualhours of 35 hours perweek)More than 17.5 hoursFull pay Full pay Full payHalf pay Half pay Hours worked (at full payper hour)Nil payHours worked (at full hourlyrate)Hours worked (at full payper hour)Situations where you may have to remain on sick leaveIf your GP has completed your fit note incorrectly, you will be required to remain at home onsick leave until further clarification is received from your GP or the FCA’s Occupational Health.If we are unable to make the necessary adjustments in time for your return to work or at all,you will be required to remain at home on sick leave until you are fit to return to work.DisputesIn the event of any dispute about a GP’s recommendations, you will be required to remain athome on sick leave until the advice has been clarified to the FCA’s satisfaction.If you do not agree that the OHA’s/OHP’s advice is in line with your GP’s advice you shoulddiscuss your concerns with your line manager and HR and try to resolve the situationinformally. It may be necessary for an additional medical report to be sought on your behalf bythe FCA.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Sickness Absence Policy as at October 2011.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The procedure is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet. Any questions on the application of the policy shouldbe directed to * HR Helpline on extension 67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 25

Leave for Special Circumstances PolicyThe FCA recognises that our employees, as part of the wider community, may be required tofulfil certain public duties. It also recognises that employees may, from time to time, facetemporary difficulties in providing certain types of care for the family.This policy has been developed to help employees to balance work and outside commitments.Any such absences should be agreed with and monitored by the employee’s line manager.PrinciplesWhat you can expect from the FCATreat requests for leave under this policy with sensitivity.Balance requests for leave under this policy with the operational needs ofthe business.Ask you to provide appropriate and relevant information that supports your request forleave for special circumstances, e.g. your invitation to jury service.What the FCA expects of youGive your line manager reasonable notice of your special leave requirements (whereverpossible).Make every effort to make up any time spent on public duties.Think carefully about the amount of time spent on discretionary public duties and theimpact it may have on your working time, e.g. if you are school governor and a localcouncillor.To disclose any external employment, appointment or business interest to yourDirector/Head of Department (HoD) and obtain their permission before starting or (if youare new to the FCA) continuing with this activity.Only take up any paid or unpaid external employment where there is no conflict ofinterest.The policyCompassionate leaveA number of compassionate leave arrangements exist to allow employees to take short periodsof leave, paid or unpaid, to deal with serious emergencies that arise at short notice. Thefollowing are typical circumstances in which employees might take paid or unpaidcompassionate leave:Close family bereavement – at the HoD or Director’s discretion, employees are eligible fornormally two but up to five days’ paid leave.Serious illness/injury of a dependant or a dependant gives birth – at the HoD or Director’sdiscretion, employees are eligible for up to two days paid leave to provide assistanceand/or make arrangements for the provision of care. Further unpaid leave can be takenwith the line manager’s agreement.Unexpected incident involving a child/dependant – employees may take reasonable unpaidtime off to deal with an incident involving their child.FCA Employee Handbook 2013 26

Breakdown of care arrangements – employees may take unpaid time off to deal with theunforeseen breakdown of care arrangements. Employees need to advise their linemanager at the earliest opportunity and agree a return date, thereafter keeping their linemanager advised of any changes.Assisting an injured person in an emergency – employees can take reasonable unpaidtime off to deal with an emergency involving a person who relies on them and who hasbeen assaulted, injured or has fallen ill.Line managers have the discretion in all cases to agree additional time off work to be taken asunpaid leave, annual leave or through a flexible working arrangement. The HR Helpline willprovide advice if required.Length of compassionate leaveThe length of time required for compassionate leave may vary depending on thecircumstances. Line managers and employees must discuss and agree the approach to beadopted.Where a period of absence is likely to be greater than two days, the employee should keeptheir line manager informed of the situation and when they may be able to return to work.Where possible, line managers should discuss with the employee what element of leave will bepaid, unpaid, etc., prior to the leave being taken (or if this is not possible, during the period ofleave itself, if practical).Compassionate leave requests must be made via “Unpaid Leave” or “Paid Leave” requeststhrough Employee Self-Service on Chrysalis.Time off for public dutiesEmployees are legally entitled to unpaid time off for a range of different public duties such asthe following (among others):Justice of the PeaceLocal councillorMember of any statutory tribunalSchool governorYou are required to obtain the written approval of your line manager in advance of enteringpublic service, and if you already hold such a position on joining the FCA, you should obtainyour line manager’s written approval for it to continue.Certain public duties carry a statutory right to reasonable time off, although there is no legalobligation for the time to be paid. Circumstances may dictate some use of discretion, but ourguidelines are as follows:Justice of the Peace duties: up to ten days paid leave.Other public duties (including Special Constables and Reserve Forces activities): up to fivedays unpaid leave.Your line manager should be given adequate notice of these duties and you should make everyeffort to make up any time spent on public duties. You must also record your public dutyabsences via Employee Self-service on Chrysalis whether paid or unpaid.FCA Employee Handbook 2013 27

The amount of leave required should be discussed with your line manager at the beginning ofeach year, and adequate notice of each individual attendance should be given.Time off for public duties will be monitored through Chrysalis, and where the amount ofabsence appears excessive, advice can be sought by the line manager from the HR Helpline.Although time off for public duties, including membership of local authorities may be granted,employees will not be granted time off to engage in activities that support a political party. Forexample, to prepare, produce or distribute party political literature.Jury serviceIf you are called for jury service, you should inform your line manager and the HR Helpline.You must also record your jury service absences under the Paid Leave Absence section viaEmployee Self-service on Chrysalis as “paid leave/authorised absence” and add a commentthat it is for jury service.Unless attendance at court from a business point of view is very difficult, it is preferable thatyou attend for jury service. Those who defer are normally called again quite soon.You will continue to receive your basic salary during jury service less any allowance paid by theCourt for loss of earnings. You should claim all allowances available from the Court andforward a statement from the Court to the HR Helpline, giving the times/days you wererequired. A deduction will be made from your salary for any allowance that you receive fromthe Court. You should attend work on any days or half days when you are not required by theCourt.The same arrangements apply for witness attendance in the course of civic duty and in theevent that you are subpoenaed or otherwise compelled by a Court to attend.Attendance at private prosecutions and civil proceedings (e.g. divorce) will not qualify for paidtime off and you will be required to take any day when you are needed in Court as part of yourholiday entitlement or as unpaid leave.Medical and dental appointmentsMedical (doctor, dentist and hospital) appointments should be arranged outside normal officehours whenever possible. If this is not possible, you should discuss with your line manager andtry to arrange appointments at times that cause least disruption to your work. You shouldmake up the time. Your line manager may ask to see written confirmation of appointments.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Leave for Special Circumstances Policy as at April 2013.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee. It is not contractual and is subject to change at our discretion of theFCA – any changes will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 28

3. Career DevelopmentCareer Development PolicyThis section is dedicated to helping you to think about your career development at the FCA.PrinciplesWhat you can expect from the FCAThe FCA will assist you in making your career plans by committing to help you understandthe options available to you. There are a number of Career Development Tools to help youwith this.To provide you with tools to support your career development; for example, ourdevelopment interventions include training courses, reading, secondments, on-the jobexperience, coaching and mentoring.What the FCA expects from youYour career development is your responsibility. While your manager can help you to thinkabout your career, support your learning and development, and facilitate your next move,they cannot guarantee you a specific career path for you or tell you what to do next –those decisions are up to you.The FCA philosophy on career developmentCareer development means different things to different people at different times. It doesnot always have to be about promotion, but can also be about self-development or findinga role that you think is challenging and interesting. We offer a broad range of experiencesat the FCA.We cannot guarantee that planning your career will definitely get you any job you applyfor, but it will help you to be best-positioned for those opportunities when they comealong.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s career development policy as at April 2009.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.Contractual status of this policyThe policy is not contractual and is subject to change at our discretion of the FCA – anychanges will be published on the intranet.FCA Employee Handbook 2013 29

Time off for Corporate ResponsibilityPrinciplesThe Corporate Responsibility Team supports the business to deliver the best service to thepublic and the financial sector through the provision of community affairs, diversity andinclusion, and environmental services.Employees can volunteer with the aim of developing their business skills, shaping theirunderstanding of consumers, increasing their business skills, and increasing their knowledge ofconsumers’ experience when using financial services.By giving employees the change to be involved in their community and linking what they do totheir learning and development, we can utilise what we learn to better understand those usingfinancial services.Volunteering also provides a chance to develop skills and make a positive contribution to thecommunity.The FCA encourages staff to participate in Corporate Responsibility projects and reflects this byallocating a certain number of working hours to such initiatives.Time off for Community AffairsEmployees are allowed 20 hours per annum to participate in individual pursuits plus anadditional 7 hours for a team challenge. This is to be recorded under the iTime code: BS Other– Work in the Community.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Time off for Corporate Responsibility Policy as at February 2013.The policy is owned by the Corporate Responsibility Department.The policy is not contractual and is subject to change at discretion of the FCA – any changeswill be published on the intranet.Any questions on the application of the policy should be directed to the Community Affairs onextension 67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 30

Sponsored Studies PolicyThe FCA provides a comprehensive range of learning and development opportunities foremployees, which can be found on My FCA Hub (Learning and Development).Some roles require professional qualification. If this is the case and an applicant is required toundergo further study, the FCA will pay all reasonable associated costs.Applicants wishing to pursue further study, in order to gain additional qualifications on avoluntary basis should discuss their intentions with their line manager. Line managers willassess the suitability of the proposal against the individual’s current role requirements.The budget for sponsored study is managed by Organisational Development (OD). The FCAreserves the right to grant or withhold funding at its discretion. In the interest of costefficiency the FCA also reserves the right to select providers for certain qualifications wherepreferred supplier exist and agreements are in place, funding may be withheld whereapplications can be met more cost effectively elsewhere.Sponsorship conditionsThe FCA will not provide sponsorship for individuals working at the FCA who are notemployees.Please note it is only possible to undertake either a qualification under this policy or onerequest under the Time off to Train Policy within a 12 month period. If you have already madea request under this policy then you may not make a training application within a 12 monthperiod of that request under the Time off to Train Policy, and vice versa.The FCA will not normally provide sponsorship for employees within their probationary period.Where an individual completes an examination at their own expense and subsequentlysuccessfully completes their probationary period, the FCA may reimburse the costs of thestudy, provided that this has been agreed in advance with the line manager and OrganisationalDevelopment.The FCA will not normally provide sponsorship for employees with less than 1 year’scontinuous service.An employee must have received at least a ‘2’ performance rating for the past 2 years.The FCA will not provide sponsorship for a new study/qualification where the applicant hasfailed to complete a course or pass an examination previously funded by the FCA.Sponsorship does not cover accommodation, travel or other incidental costs associated withthe course. These should be agreed with the line manager and, if appropriate, reclaimedthrough Expenses from the local area budget.Sponsorship is not available by Organisational Development for membership of professionalbodies (unless this is a necessary condition of being able to take a qualification offered by thatbody). It is the applicant’s responsibility to inform the Learning & Development Support Teamof existing membership where this permits a discounted rate for examination entry or studymaterials.The FCA will not be responsible for the additional costs incurred as a result of late entry to acourse or examination, or for cancellation fees if FCA employee is unable to sit an examination.Please ensure that the study plan takes into account the amount of time needed to devote togaining the qualification and allow at least ten days for Organisational Development to processthe application.FCA Employee Handbook 2013 31

Your study contractBy signing the Sponsored Study application form the employee agrees to adhere to theSponsored Studies policy, and that the FCA may deduct any monies owed, from their salary,during their notice period where applicable.When an employee resigns from the FCA before completing their sponsored study, or fails tocomplete that sponsored study, or is dismissed by the FCA for reasons of unacceptable conductor capability during this period, the FCA employee will be liable to repay the FCA 100% of thetotal course costs. When an employee resigns after completing their sponsored study and for a12 month period after the completion date, or is dismissed by the FCA for reasons ofunacceptable conduct or capability during this period, the FCA employee will be liable to repaythe FCA 50% of the total course costs.Repayment of sponsorship will not be required where examinations and courses are taken atrequest of the FCA. This distinction should be made clear in the application form.Applicants must obtain approval for sponsorship before any definite bookings committing FCAexpenditure are made.When applicants successfully pass a qualification, they need to send evidence immediately ontheir receipt and within 6 months of completion of the course to Learning & DevelopmentSupport via the * HR Helpline. If this is not done the FCA may be asked to repay some of thefunding.Study leaveSponsorship is available for part-time, evening, distance learning and ‘block- release’ studies.Sponsorship for full-time study is not available. The business case must include justification forany ‘block-release’ or other time away from normal working hours, required as part of thestudy Programme and must be agreed/signed off by the line manager before submitting theapplication to Organisational Development.The time off for study/revision/examinations is not an automatic entitlement; it is subject toline management approval based upon business requirements and individual circumstancestherefore should be agreed in advance of any application being submitted.As a guideline, it is suggested 5 days study leave per annum. However for certain industryqualifications, time off work to attend courses may be permitted in excess of this. This shouldbe agreed with the applicant’s line manager prior to application as there may be clear businessreasons why this is not acceptable. In addition, a maximum of 2 days revision leave may bepermitted for each exam plus a half-day for the exam itself.Re-sitsIn circumstances where the FCA requires the individual to obtain a professional qualificationexamination, re-sits may be paid for when an employee fails to pass at the first attempt.Payment will be for the cost of the exam only and not additional courses or materials.Where the study is being undertaken voluntarily, we may consider reimbursement of the costsof one re-sit. The employee should pay for the re-sit first. When the examination issuccessfully passed, only the cost of the examination entry may be considered forreimbursement, the cost of further materials will not be reimbursed.Examination costs will not be reimbursed if the employee fails the re-sit. Where costs arereimbursed, the additional cost will form part of the agreement to repay sponsorship onleaving the FCA (see above for further details).FCA Employee Handbook 2013 32

Individuals should check first with the Learning & Development Support Team via the * HRHelpline to ensure that budgets for re-sits are available, prior to making any financialcommitment.Equality of opportunityIn line with the FCA’s Equality of Opportunity Policy, the FCA will strive to avoid unlawfuldiscrimination in all aspects of employment – including provision of training.Who is covered by this policy?All FCA employees are covered by the Sponsored Studies Policy. This includes employees onfixed term contracts, although sponsored study courses should be completed within theduration of the contract.Ownership, updates and query managementThis is the FCA’s Sponsored Studies Policy as at June 2010.The budget for all Sponsored Study is owned by the HR Division. The policy is owned by theHR Division and has been developed in conjunction with the Staff Consultative Committee.The policy is not contractual and is subject to change at our discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 33

Time off to Train PolicyFrom 6 April 2010, new legislation entitles eligible employees (including fixed-term workers) tomake a request for time off to train. This is to help develop specific skills relevant to your job,workplace or business that will improve your effectiveness and the performance of the FCA.While requests may involve time away from your daily duties, the main focus of the new rightis about employees and managers agreeing relevant training.The FCA is committed to the development of our employees. We provide a comprehensiverange of learning and development opportunities and support employees undertaking selfstudyprogrammes.This Time off To Train Policy enables employees to make a request to take time off to trainunder section 63D of the Employment Rights Act 1996.The legislation is aimed at employers who do not offer adequate training opportunities for theiremployees. You do not have to use this right for every training request as the FCA already haswell established policies, systems and processes in place for making training requests, soplease review these before making a request under this policy.You should continue to use Chrysalis for applying for internal training courses. For externalcourses, qualifications or training you can make a request in a number of ways:Sponsored Studies for professional qualifications funded by the FCA (see the SponsoredStudies Policy and application process);External courses booking process for seminars, conferences and other training that wecannot provide internally and that will be paid for by the FCA.Other requests for time off to train where the FCA will not cover the cost or the training oryour salary during the training can be requested under this policy.Please note it is only possible to undertake either a qualification under the Sponsored StudiesPolicy or make request for time off to train within a 12 month period. If you have alreadymade a request under this Time off to Train Policy then you may not make an applicationwithin a 12 month period of that request under the Sponsored Studies Policy, and vice versa.The FCA encourage employees who wish to develop their career by undertaking studies relatedto their role and may provide time off for training under this policy, dependent upon the natureof the course of study or qualification.Employees not covered by this policy may still request training through the internal processesnoted above.There is no automatic right to time off for training at all or for any specific period, to be paidduring any period you may have off to train under this policy, or for the FCA to pay for the costof a training course as there will always be circumstances when the FCA is unable toaccommodate a request. However, this policy aims to facilitate discussion and to encourageboth employees and managers to find a mutually agreeable solution for you to develop theskills and knowledge required for your career at the FCA.PrinciplesWhat you can expect from the FCATo consider reasonable time off for relevant training.Each request will be considered seriously and assessed on its own merits.FCA Employee Handbook 2013 34

We will respond within stated statutory timeframes, unless otherwise agreedwith you.To support employees who wish to undertake a course of study that is relevantto the individual employee’s development and the FCA’s business.What the FCA expects from youYou should discuss your development requirements with your line manager in the firstinstance during one of your regular bilaterals – you need not wait until your developmentreview.You must gain agreement from your line manager to undertake training.You should consider internal routes for training before making an application.You must complete the Time off to Train request form relevant to this policy.You must record the time off to train under the Unpaid Leave Absence record viaEmployee Self-service on Chrysalis.You should make reasonable efforts to attend any meeting to discuss your request (and/oran appeal). Failure to attend more than once without reasonable cause could amount to awithdrawal (see below).You should ensure that your training is recorded in your development plan and keep thisupdated.You should take responsibility for ensuring that you devote sufficient time to your chosenstudy and ensure you manage your study around your role and your team commitments.You will provide the FCA with confirmation of the course you are attending and evidencevia the HR Helpline once your leave has been authorised.Line managers’ responsibilitiesLine managers are expected to provide coaching and mentoring support for employeesundergoing training and development.Line managers will discuss and help you plan the most relevant training for you and forthe FCA, but must consider internal routes first.Line managers will review and discuss with the relevant divisional director the Time off toTrain application from employees and should consider applications in the context of TalentManagement.Line managers have a responsibility to ensure that key skills and knowledge are sharedwith less experienced staff.Line managers must ensure that the balance is struck between business needs andsupporting staff to develop to their full potential.The policyEligibilityIn order to make a request you must:Be an FCA employee;FCA Employee Handbook 2013 35

Have worked continuously for at least 26 weeks on the date you makeyour request.You must not have a current warning under either the Disciplinary or the PerformanceManagement Procedure.Your last two appraisal ratings must have been a two or above.Not have made another application for Time off for Training or Sponsored Studies withinthe last 12 months. Please note only one application can be made within a 12 monthperiod for either Time off to Train or Sponsored Studies, but not both.Employees not covered by this policy may still request training through the internal processesnoted above.Time off to Train can be combined with holiday, but not with sickness, career leave or leaveunder the FCA’s Family Leave policies.Time off to Train requestsUnder this policy you can make a request to take time off to undertake training that willimprove your effectiveness in the FCA and the FCA’s performance.Types of trainingThe training can be an external course, such as an accredited Programme that leads to aqualification. Alternatively the training can be shorter unaccredited training to help youdevelop specific skills relevant to your role or career at the FCA (before applying, checkwhether the FCA’s internal courses will meet your request). Please note, you cannot apply forTime off to Train under this policy, and also either sponsored studies or external courses, forthe same course/training.Your manager and director may accept your request, but reserve the right to propose that thetraining can be met in a different way (e.g. on-the-job, from within the FCA’s range of internalcourses, or through an external supplier that the FCA already uses).Amount of time off permitted and paymentFor requests made under this policy, the FCA will not cover the cost of the training, but willconsider giving you reasonable time off to undertake the training. The duration of any periodfor which you take leave to train will be at the FCA’s discretion.It may be necessary for you to take unpaid leave for some or all of the period you will betraining, or to vary your hours to work on a flexible working arrangement (See the FlexibleWorking Policy).For the time off that you request, the FCA will agree one of the following with you:You will take unpaid leave for all or part of the period of time off to train (this may affectyour benefits);You will vary your hours of work by making an application under the Flexible WorkingPolicy for the period you will be completing the training. This will be a permanent changeto your Terms and Conditions, unless agreed otherwise (i.e. the arrangement is to betemporary for the duration of the training).ConsiderationsFCA Employee Handbook 2013 36

In considering a request for time off for training, FCA will take the following factors intoaccount:Will the proposed training improve your effectiveness in the FCA inyour performance?Will the proposed training improve the performance of the FCA?Will there be any additional costs incurred by the FCA?Will the proposed training have a detrimental effect on your ability to meetyour objectives?Can worked be reorganised among existing staff?Will the proposed training have a detrimental impact on quality?Will the proposed training have a detrimental impact on performance?Will there be an insufficiency of work during the periods you propose to work?Are there planned structural changes during the proposed study ortraining period?Process for making a request under the Time off to Train Policy(See the Time off to Train application form under “Forms” on My FCA Hub)You should discuss your development requirements with your line manager in the first instanceto check if it can be covered by one of our internal courses, sponsored studies, etc.If you then decide to make a request under this policy, you will be required tomake a request by fully completing the Time off to Train Request form on My FCA Hub, whichis sent electronically to HR Helpline. All applications must be signed off by your Director (orManaging Director for Heads of Department and above). You must also record the approvedtime off to train under the Unpaid Leave Absence record via Employee Self-service onChrysalis.Within 28 days of receipt of your application a meeting may be arranged between you andyour line manager. This meeting will provide an opportunity to discuss your request in depthand to explore how it fits with your role or the work of the FCA, and if possible, how best itmight be accommodated. Your manager will discuss your request with your divisional directorbecause final approval of your request must be made by the director.Within 14 days of the meeting, we will confirm in writing whether or not your request has beenagreed. If it has, a start date for your training will be agreed with you and you will be issuedwith any revised Terms and Conditions. If the application cannot be accepted you will beprovided with clear business grounds as to why not. If we have been unable to reach adecision at this point you will be notified accordingly.Withdrawing and cancellation of a requestYou will be able to withdraw your request before your manager considers it. You should onlywithdraw a request if you no longer wish to pursue it. Withdrawals should be in writing andgiven to your manager. If you do withdraw your request you will not be able to make a furtherrequest for 12 months.Completion of trainingFCA Employee Handbook 2013 37

On completion of your training you will need to send evidence that you attended the course(copy of an invoice, dated certificates, etc.) within 6 months of completion of the course to theHR Helpline. A copy will be retained on your e-personnel file. If you do not provide thisevidence it may result in disciplinary proceedings.Return to work after time off to trainIf you are taking a continuous block of time off to train, you should discuss with your managerif your role will be kept open until you return to work. In most cases you will return to thesame job. If this is not possible, you will return to a similar job in the same Division as the onethat you left. The terms of the job, where possible, will be no less favourable than the job thatyou left. However, if there is a business restructure while you are off, you will be included.AppealsIf you feel that the reason for refusing your request is unjustified, you may appeal in writing.This must be done within 14 days of the notification of the refusal. The appeal should state themain reasons why you consider the decision to be unjustified. The appeal should be submittedto the HR Director.The appeal will be heard by two people who will be senior employees of the FCA one of whomwill normally be the Director of your division. They will not have been involved in the meetingpreviously conducted. A member of the HR Division will also be present to take notes and,where appropriate, give procedural guidance. The appeal will normally be held within 10working days of receiving your written reasons for appeal.You will normally be given at least 3 working days’ notice of the hearing.The outcome of the appeal will be communicated to you in writing as soon as possible after theappeal has been held.Right to be accompaniedYou may be accompanied at formal meetings by a companion, who may be a StaffRepresentative or another FCA employee of your choice who may be a friend or colleague.Please note that the fellow employee should not be a member of the HR Division. Alternatively,you may be accompanied by a Trade Union official. The meeting may be postponed, at yourrequest, for up to five working days if your chosen companion is not available to attend on thedate set for the meeting.Who is covered by this policy?All FCA employees are covered by the Time off to Train Policy. This includes employees onfixed term contracts.Ownership, updates and query managementThis is the FCA’s Time off to Train Policy as at June 2010. The policy is owned by the HRDivision and has been developed in conjunction with the FCA’s Staff Consultative Committee.The policy is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to the HR Helpline onextension 67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 38

Talent Management PolicyThe FCA approach to Talent Management in the FCA is to ensure we have the right people inthe right roles, at the right time who have the right depth and breadth of technical knowledgeand behaviours that enable the FCA to deliver its strategic aims. For staff in the FCA, TalentManagement provides each of us with an opportunity to develop further in our current rolesand allows us to work towards our career aspirations at the FCA.PrinciplesWhat you can expect from the FCAOpen and honest feedback conversations with your line manager around expectationsetting of current and future development and career opportunitiesHonest feedback collated and given from your line manager and his/her peersSupport from your line manager in setting learning and development plansWhat the FCA expects from youTake responsibility for driving and owning your own developmentListen and act on feedback from your line managerWork with your manager to develop and implement a personal development planThe policyTalent Management will ensure that all staff continues to develop themselves and contribute tothe FCA to the best of their ability. Open and honest conversations with your line managerabout your performance, career aspirations and potential will help identify your strengths andareas for development in the short and longer term. The FCA approach to Talent Managementwill also help the organisation resource plan, where appropriate develop people internally andwhere appropriate ensures that the FCA has successors available to replace business criticalroles, if required.Talent Management has been part of the FCA for several years. Business Units have spent anumber of years looking at talent management for individuals and this has now been used andhas informed the design which has resulted in the introduction of a more consistent approachacross the business.What do we mean by Talent Management in the FCA?Talent Management will give us:the opportunity to provide targeted feedback, development and support to all staff,ensuring they develop and continue to increase their depth of technical experience andbehaviour in order to help the FCA achieve its business goals;more opportunity to give all employees honest and open feedback about their current roleand future career potential;a consistent approach that encourages all individuals to take an active role in theirdevelopment and career whilst with the FCA;a potential pool of people with the appropriate technical depth and breadth of experience,who are able to take on key positions in the FCA andassurance that all areas of the business are properly resourced.FCA Employee Handbook 2013 39

Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Talent Management Policy as at April 2009.The policy is owned by the HR Division and has been developed in conjunction with the FCA’sStaff Consultative Committee.The policy is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to the HR Helpline onextension 67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 40

Technical Specialist PolicyBackground and purposeCertain roles within the FCA require specialist skills and knowledge. Such roles exist to providespecialist subject matter input rather than providing leadership or management input.Technical Specialist (TS) roles are equivalent to Manager grade (with similar salary structuresand the same range of flexible benefits) but do not confer any line managementresponsibilities.The purpose of this Technical Specialist Policy is to provide a framework for the use ofspecialists in the FCA.Some roles in the FCA are defined as TS roles because of the specialist nature of the skillsrequired to perform that role. Such positions should normally be filled by an open recruitmentprocess (via advertisement of the role) except where there is senior management (i.e. Directoror above) agreement that the role can be filled as part of a ‘managed move’.Cross business unit discussion (e.g. at EOC) should confirm whether there may be severalpotential candidates for a given role. If it is known that there is more than one potentiallysuitable candidate for a TS role, an assessment/ competitive process should always be used.This should supersede a ‘managed move’ approach.Some individuals may develop technical capabilities and skills over a period of time and maybe granted a promotion to a TS grade, even where the role has previously been defined andfilled as an Associate position. Such promotions will be as a result of development discussionsbetween an individual and his/her manager, the latter acting as ‘sponsor’ in nominating theindividual, in the first instance to the promotions panel within the business unit (comprising amix of HoDs and Directors from the area).PrinciplesWhat you can expect from the FCAIf a TS role is created as a result of an individual nomination, this should conform to theannual pay and performance review process, with any promotions becoming effective from1 April or 1st October.Individual nominations are filtered by HoDs’ discussion panel (locally), followed by an SMTpanel review.A shortlist of candidates is drawn up for interview (with a HoD who is not part of theindividual’s line). Final candidates are approved by the Managing Director and newappointments will be effective from 1 April or 1 October.There is no quota of TS across the FCA – each business unit and MD (or equivalent, e.g.COO) will agree individual conversions to TS in accordance with their business plan andthe development plans of individualsWhilst it is usually preferable to advertise TS positions, in situations where an individual isdeemed ready for conversion, the line management sponsor will need to provide evidenceto the MD showing how that individual has developed and demonstrate that candidate’sability against predetermined TS role criteria.There will be annual monitoring of the number of conversions to TS by the central Reward& Reporting team, to prevent ‘grade drift’.FCA Employee Handbook 2013 41

The policyDefinitionThe definition of Technical Specialist is ‘a subject matter expert who is deployed on the basis oftheir deep and specific subject matter expertise and skills set and not on the basis of theirability to manage, lead and develop a team’.TS status is conferred either because the role requires specialist skills and experience or as aresult of an individual developing relevant specialist skills, over a set period of time, as part ofa formal learning path which has been created to meet the requirements of the local businessarea. TS do not have direct reports.Contractual StatusTS is equivalent to Manager grade within the structure and attracts the same remunerationpackage as Manager grade.Scope and RemitIt is intended that Technical Specialists will not manage people. However it is recognised thatin practice there may be the need to mentor another specialist or to manage aPA/Administrator or one other team member (e.g. a graduate) in order to allocate work. Underno circumstances should a TS manage a team.ExceptionsThere may be some business areas where TS currently carry additional people responsibilitiesover and above those specified as part of the remit, perhaps, for example, by taking onadditional people responsibilities over time which were not originally intended to form part ofthe role. In such cases, the roles will need to be agreed by the MD of the business unit andplans put in place to transition the people responsibilities to a Manager or HoD, no later than12 months from the effective date of this policy.Filling TS positionsTS roles which are part of the organisational structure should be advertised. However, in somecases (e.g. if TS positions are used as part of career development) the role may not always bewidely advertised or may not be advertised at all. However if this approach is used, great carewill need to be taken to avoid direct or indirect discrimination, for example, by ensuring that alleligible candidates are given consideration when deciding to apply the ‘career development’approach and that the process of decision making is objective and involves the collectiveagreement of the BU SMT. During this part of the process, the BU SMT must satisfythemselves that there are no other potential candidates by checking with relevant HoDs andManagers, if necessary from other Business Units to ensure that we are not excluding otherpotentially eligible candidates.In some business areas, although there are some formal TS roles, individuals can developskills and capabilities over time which would enable them to progress to TS as part of theirpersonal development. This application of the TS grade (as a tool to recognise the progressionof an individual’s specialist knowledge) is vital to ensure that the FCA develops, motivates andretains key skilled individuals. Individuals who are converted into a TS grade do so as a resultof individual development meetings with their line manager and in these cases there is no‘open competition’; however the process (as described above) will normally be applied toensure fairness and transparency.Career Structure/ProgressionFCA Employee Handbook 2013 42

As mentioned above, promotion from Associate to TS is used as part of individual developmentand retention to maintain a pipeline of skills so that the specialist needs of the FCA continue tobe met.Although it is not envisaged that there will be an automatic career path between TS andTechnical HoD, due to the very specialist knowledge that these roles command, progressionmay be possible and would be based on a selection process open to internal and externalcandidates.As each role is stand alone and defined on its own merits it is not appropriate to put in place aformal career path between TS and Technical HoD.Technical Specialists will normally report to a HoD or Director but may on occasion report to aManager.Salary RangesThere are separate salary ranges aligned to each relevant job family for TS roles. Please referto the Performance, Pay and Benefits pages on the Employee Guidance intranet site.Ownership, updates and query managementThis is the FCA’s Technical Specialist Policy as at October 2009.The policy is owned by the HR Division.The policy is subject to change at the discretion of the FCA – any changes will be published onthe intranet.Any questions on the application of the policy should be directed to the HR Helpline onextension 67070.Contractual status of this policyThis policy is for information only and does not form part of your contractof employment.FCA Employee Handbook 2013 43

Technical HoD PolicyBackgroundHoD roles span across all of the FCA (and also have a ‘read across’ to Senior Adviser roleswithin Direct Reports). Some HoD roles require highly refined levels of technical skills and forthat reason a new grade - Technical HoD – has been introduced. Such roles will exist toprovide, exclusively, specialist subject matter input rather than also providing leadership ormanagement input.PrinciplesWhat you can expect from the FCAExCo will approve all appointments to Technical HoD.Base salaries and annual individual incentives of Technical HoDs will be agreed and signedoff by ExCo.The FCA will support Technical HoDs in their continuing professional development e.g. bysupporting and actively encouraging the individual in giving talks to industry firms onbehalf of the FCA.Technical HoDs will be assessed against the FCA’s behavioural competencies but will notbe required to attend Executive Development Programmes.What the FCA expects from youAlthough not a part of the Senior Leadership Team, a Technical HoD will be expected todisplay a collegiate and supportive attitude to the collective objectives and direction of theFCA at all times.Technical HoDs will be expected to develop their knowledge and skills, usually bymaintaining links with academia, government institutions and industry contacts withoutcompromising their FCA status.The policyDefinitionThe definition of Technical HoD is: ‘a subject matter expert who is deemed to be an industryexpert (or leading practitioner) who is recruited and deployed principally on the basis ofhis/her very deep and specific skills set’.A Technical HoD is likely to have considerable industry experience, for example, as aconsultant or adviser, or to have held a Director (or similar) position within an authorised firm.Although Technical HoDs are not people managers or leaders, and will be recruited primarilyon the basis of their relevant specialist knowledge and expertise, they are also expected toconform to the FCA’s behavioural competencies (and will be assessed against these).Contractual StatusTechnical HoD is a new contractual grade introduced in 2009, closely aligned to other HoDroles and receives a similar salary range and level of benefits package. Technical HoD roles aresenior roles within the FCA but do not form part of the senior management or leadershiphierarchy. Some existing roles will fall within the remit of the THoD policy to ensure alignmentand consistency.Scope and RemitFCA Employee Handbook 2013 44

Technical HoDs should not manage people. However it is recognised that in practice there maybe the need to mentor another specialist or to manage a PA/Administrator or one other teammember in order to allocate work. Under no circumstances should a Technical HoD manage ateam.In addition, Technical HoDs are not considered as part of the Senior Leadership Team whichcomprises HoDs s, Directors and MDs (or equivalent e.g. COO) all of whom are responsible fordelivering the FCA’s business plan including the leadership and people development activitiesthat this entails.The separation of Technical HoDs from the Senior Leadership Group makes it easier to managecommunications to, and engagement of, the leadership team.Technical HoDs will be excluded from the Talent Management Review, as this initiative reflectsupon leadership capability which falls outside the scope of the Technical HoD role.Filling Technical HoD positionsAll business areas identifying the need for a Technical HoD role will be required to secure ExCoagreement to the business case.New Technical HoD roles will normally be advertised to ensure the best candidate is recruited,although it would not normally be anticipated that such experts will be readily sourced fromwithin the FCA due to the specific and specialist industry expertise sought.Career Structure/ProgressionAlthough it is not envisaged that there will be an automatic career path between TS andTechnical HoD roles, due to the very specialist knowledge that these roles command,progression may be possible and would be based on a selection process open to externalcandidates.Technical HoDs will normally report to a Director or MD (or equivalent e.g. COO) but may onoccasion report to another HoD.Technical HoDs in Supervision areas will fall within the remit of T&C by the end of 2009,whether they are client facing or not.Salary Ranges and Individual incentivesTechnical HoD salary ranges.Although the base salary range is aligned with other HoD salary ranges, annual individualincentives will not be subject to the 40:40:20 weighting, as this reflects leadership attributes.Ownership, updates and query managementThis is the FCA’s Technical HoD Policy as at October 2009.The policy is owned by the HR Division. The policy is subject to change at the discretion of theFCA – any changes will be published on the intranet.Any questions on the application of the policy should be directed to the HR Helpline onextension 67070.Contractual status of this policyThis policy is for information only and does not form part of your contractof employment.FCA Employee Handbook 2013 45

4. Ensuring Fair TreatmentCorporate Responsibility and Inclusion StatementOur overall commitment to our Corporate Responsibility (CR), including equality, diversity andinclusion (EDI) is set out in the FCA Business Plan, CR Strategy and objectives. All FCA staffare expected to demonstrate this commitment, as a minimum, through the FCA’s CulturalCharacteristics, Corporate Citizen Behavioural Competency, and compliance with the Equalityof Opportunity and Bullying & Harassment policies.FCA senior management are expected to:Create a positive working environment in which all individuals are able to make best use oftheir talents to help us achieve our vision to be an employer of choice and a betterregulator.Lead from the top by role modelling positive behaviours (set out in the BehaviouralFramework and SLT objectives), challenging unacceptable behaviours and reinforcingpositive behaviours.Monitor the profile of our employees across the protected characteristics in differentareas of employment and take steps to address any issues and to improve the diversityof our workforce.Encourage all employees to develop their skills and qualifications and to take advantage ofopportunities for progression, promotion and development within the organisation.Take seriously all complaints, whether raised informally or formally through the EqualityComplaints Procedure), and take appropriate action.Protect anyone who makes a complaint in good faith about an equality matter, or actsas a witness or supports a colleague.FCA staff, irrespective of job level, are expected to:Take personal responsibility for creating and maintaining a positive working environment inwhich, discrimination, victimisation, bullying and harassment are not tolerated, and wherewe treat each other with dignity and respect.Value difference and respect the contributions everyone makes to the FCA.Have a good level of understanding of our EDI obligations and behave as a representativeof the FCA at all times, including the various ways we interact with other, at work-relatedsocial events and on social networking sites.Include EDI priorities within our business operations, policies, training and practices.Demonstrate behaviours set out in the FCA’s Cultural Characteristics and BehaviouralFramework;Undertake relevant EDI training (e.g. Diversity in the Workplace elearning, Recruitmentelearning and “Successful Interviewing” workshop).Support the FCA, when requested, in the investigation of any complaints made under theEquality Complaints Procedure.FCA Employee Handbook 2013 46

Equality of Opportunity PolicyStatement of intent and purposeOur FCA’s Corporate Responsibility & Inclusion Statement sets out senior management’sstrategic commitment to promoting equality, diversity and inclusion (EDI). It also outlines theexpectations we have of all FCA staff in how they treat each other, and the type of workingenvironment we create through the FCA’s Cultural Characteristics and Behavioural Framework.We want all staff to be clear about the behaviours and actions that are discriminatory to helpprevent this type of treatment and continue to make the FCA a positive place to work. We alsowant staff to feel comfortable raising issues under this policy as soon as possible, so that wecan provide support and take appropriate action to resolve the situation.To support this, our Equality of Opportunity Policy demonstrates our commitment toeliminating discrimination in all areas of our work as an employer (including recruitment,training, learning and development, access to facilities, reward and benefits, flexible working,disciplinary, performance management, grievance and leaving procedures). We will take allcomplaints seriously, whether raised informally or formally under our Equality ComplaintsProcedure.We will not tolerate any form of discrimination or victimisation on the basis of any of the‘protected characteristics’ of age, disability, gender reassignment, marital or civil partnerstatus, pregnancy or maternity, race (to include colour, nationality, ethnic or national origin),religion or belief, sex or sexual orientation (see Annex 1).The principles of equality of opportunity also apply to the way in which we treat visitors,clients, customers, suppliers and former staff members.All staff have a duty to act in accordance with this policy and to treat colleagues appropriatelyat all times and not to discriminate against, harass or victimise others, regardless of theirstatus. Further information on bullying and harassment can be found in our separate Bullyingand Harassment Policy. Please make sure you are aware of your obligations in the CorporateResponsibility & Inclusion Statement.Who and what are covered by this policy?This policy covers:all individuals working for the FCA at any of its premises, irrespective of their employmentor contractual status, level or grade - it therefore includes all people managers, employees,contractors, agency staff and anyone else engaged to work on behalf of the FCA;discrimination within the workplace and/or at work-related events such as business tripsand/or social events.Scope of the PolicyDefinitionsDiscrimination in employment happens as a result of bias, prejudice, misconception andstereotyping. This can mean that an individual’s talents, skills, abilities, potential andexperience are not considered fairly. It might not be intentional but, as well as being unfair, itis also a breach of the Equality Act 2010. The various types of discrimination are described inAnnex 1.The legal aspects of EDI are also covered in the FCA’s mandatory Diversity in the Workplaceelearning module for all staff (available through the Chrysalis system) and Annex 1 below.Temporary staff and contractors are also encouraged to undertake this training. We have aseparate Bullying and Harassment Policy.Complaints and support availableFCA Employee Handbook 2013 47

You may experience or witness behaviours from an individual or group that you feel areunacceptable within the legislation (i.e. the Equality Act 2010 - see Annex 1) as set out in thispolicy. We understand that this can be a difficult time, so we have set out a number of waysyou can deal with such issues, either informally or formally, and provided information on thesupport that is available. We believe that, wherever possible, issues are best dealt withpromptly and informally. The Equality Complaints Procedure outlines various options availableto you to raise concerns.Discrimination will not be tolerated by the FCA. Employees found to have discriminated arelikely to face disciplinary action up to and including dismissal. Similarly, employees who raiseallegations of discrimination in bad faith or provide false information may also face disciplinaryaction.Ownership and updatesThis is the FCA's Equality of Opportunity Policy as at April 2013.The policy is owned by the HR Division and has been developed in conjunction with the FCA'sStaff Consultative Committee, Executive Diversity Committee, Corporate Responsibility Team,and representatives from the internal Staff Network Groups.The policy is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.The policy will be monitored and reviewed every two years.Any questions on the application of the policy should be directed to the HR Helpline onextension 67070.Contractual status of this policyThis policy does not form part of your contract of employment.Annex 1: The Equality Act 2010 and definitions of discriminationProtected characteristicsIt is unlawful to discriminate directly or indirectly because of age, disability, genderreassignment, marital or civil partner status, pregnancy or maternity, race (including colour,nationality, ethnic or national origin), religion or belief, sex or sexual orientation, each being a‘protected characteristic’ for the purposes of the Equality Act 2010.Types of unlawful discriminationDiscrimination by or against an employee is generally prohibited unless there is a specific legalexemption. Discrimination may be direct or indirect and it may occur intentionally orunintentionally. Employees can be held personally liable as well as, or instead of, the FCA forany act of unlawful discrimination.Direct discrimination occurs when a person is treated less favourably than another becauseof a protected characteristic they have or are thought to have (see ‘perceived discrimination’below), or because they associate with someone who has a protected characteristic (see‘associative discrimination’). For example, rejecting a job applicant because of their race wouldbe direct discrimination.Indirect discrimination occurs when someone is disadvantaged by an unjustified provision,criteria or practice that also puts other people with the same protected characteristic at aparticular disadvantage. For example, a requirement to work full time may put women at aparticular disadvantage if they are a primary carer and therefore have greater childcarecommitments. Such a requirement will be unlawful unless it can be objectively justified.FCA Employee Handbook 2013 48

Associative discrimination is direct discrimination against someone, not because theythemselves have a particular protected characteristic, but because they associate withsomeone who has a protected characteristic. For example, a non-disabled employee mightbring a direct disability discrimination claim where they have been treated less favourablybecause they have a disabled child.Perceived discrimination is direct discrimination against someone, not because they have aprotected characteristic, but because they are incorrectly perceived by others to have aprotected characteristic. For example, an employee might bring a direct religiousdiscrimination claim where they have been treated less favourably because the employerwrongly believes them to be a certain religion.Failure to make reasonable adjustments occurs when working arrangements disadvantagean individual because of a disability and reasonable adjustments are not made to overcomethe disadvantage and enable the person access to a particular role. It is unlawful to treatsomeone less favourably because of disability or to fail to make reasonable adjustments toovercome barriers to or in employment caused by disability. The duty to make reasonableadjustments includes removing, adapting or altering physical features if these features make itimpossible or unreasonably difficult for disabled people to make use of services and/or toperform the duties of their job. It could also include changes to a job role or working hours toaccommodate a disabled employee.Harassment occurs when someone engages in unwanted conduct which has the purpose oreffect of violating someone else’s dignity or creating an intimidating, hostile, degrading,humiliating or offensive environment for them. Unlawful harassment may involve conduct of asexual nature (sexual harassment) or it may be related to age, disability, genderreassignment, marital or civil partner status, pregnancy or maternity, race (including colour,nationality, ethnic or national origin), religion or belief, sex or sexual orientation. Employeeswho commit serious acts of harassment could be charged with a criminal offence. Harassmentis dealt with further in our Bullying and Harassment Policy.Victimisation - It is unlawful to victimise someone because they have alleged unlawfuldiscrimination, instigated an investigation under the Equality Complaints Procedure, issueddiscrimination proceedings, raised a concern under the FCA’s Whistleblowing Policyor supported someone else who has made a complaint or given evidence in relation to acomplaint or proceedings.FCA Employee Handbook 2013 49

Bullying and Harassment PolicyStatement of intent and purposeOur FCA’s Corporate Responsibility & Inclusion Statement sets out senior management’sstrategic commitment to promoting equality, diversity and inclusion (EDI). It also outlines theexpectations we have of all FCA staff in how they treat each other, and the type of workingenvironment we create through the FCA’s Cultural Characteristics and Behavioural Framework.We want all staff to be clear about the behaviours and actions that amount to bullying andharassment, to help prevent this type of treatment and make the FCA a positive place to work.We also want staff to feel comfortable raising issues under this policy as soon as possible, sothat we can provide support and take appropriate action to resolve the situation.To support this, our Bullying and Harassment Policy demonstrates the FCA’s commitment toeliminating bullying and harassment in all areas of our work. Please make sure you are awareof your obligations in the Corporate Responsibility & Inclusion Statement.We will not tolerate bullying or harassment in any area of our work as an employer. We willtake all complaints seriously, whether raised informally or formally under our EqualityComplaints Procedure.Consequences of bullying and harassmentBullying and harassment can have serious consequences for both individuals and the FCA. Itcan make people unhappy, stressed, affect their work, family and social relationships, theirwork performance and, in severe cases lead to mental illness. For the FCA it can lead to lowstaff morale, poor performance, increased turnover and absence, legal claims and reputationaldamage.Employees found guilty of bullying or harassment are likely to face disciplinary sanctions up toand including dismissal. Serious harassment may be a criminal offence under the Protectionfrom Harassment Act 1997.Who and what are covered by this policy?This policy covers:all individuals working for the FCA at any of its premises, irrespective of their employmentor contractual status, level or grade - it therefore includes all people managers, employees,contractors, agency staff and anyone else engaged to work on behalf of the FCA;bullying and harassment within the workplace and/or at work-related events such asbusiness trips and/or social events.Scope of this policy and the lawDefinitionsDefinitions of discrimination, victimisation, and protected characteristics can be found in Annex1 of the Equality of Opportunity Policy and our Diversity in the Workplace elearning module.The Equality of Opportunity Policy deals with discrimination and victimisation.Harassment occurs when someone engages in unwanted conduct which has the purpose oreffect of violating someone else’s dignity or creating an intimidating, hostile, degrading,humiliating or offensive environment for them. Unlawful harassment may involve conduct of asexual nature (sexual harassment) or it may be related to age, disability, genderreassignment, marital or civil partner status, pregnancy or maternity, race (colour, nationality,ethnic or national origin), religion or belief, sex or sexual orientation. It is important tounderstand that:FCA Employee Handbook 2013 50

A single serious incident may amount to harassment.A person may be harassed even if they were not the intended “target” of the behaviour inquestion. For example, a person may be harassed by racist jokes about a particular ethnicgroup to which they do not belong provided the jokes create an offensive environment forthem.A person need not possess the relevant protected characteristic themselves, but may beharassed on the basis of their association with another person who has a protectedcharacteristic or on the basis of a perception that they have a protected characteristic(even if that perception is wrong).Conduct may amount to harassment even if there was no intention to offend. Provided theconduct has the effect of violating someone else’s dignity or creating an intimidating,hostile, degrading, humiliating or offensive environment for them (even if that was not thepurpose of the behaviour), the behaviour will amount to harassment. Remember thatwhat one person may find funny may offend another but it makes no difference that noteveryone would find the conduct offensive. We all have different perceptions; it is up to theindividual to decide what they consider to be unwanted conduct.The FCA may in certain circumstances be liable for harassment of its employees by thirdparties such as clients or suppliers – namely where it knows that an employee has beenharassed by a third party in the course of their employment on at least two other occasions(whether or not the third party was the same person on each occasion) but it failed to takereasonable steps to prevent further harassment. This underlines the importance ofreporting to the FCA any incidences of harassment which you experience or witness.Examples of HarassmentHarassment may be physical, verbal or non-verbal. Examples of harassment may include but arenot limited to: unwanted physical contact ranging from touching to serious sexual or physical assault -invading someone’s personal space may amount to harassment; verbal conduct such as sexist, racist, ageist and/or homophobic comments or innuendo;derogatory remarks about any individual or group with a protected characteristic; offensiveslogans, insults, comments of a personal nature; suggestive remarks, nicknames,inappropriate ‘banter’, jokes or language; unwanted non-verbal conduct, including sexually suggestive behaviour and/or gestures,staring and leering, or other unwanted sexual attention or advances; the display, storage or circulation of offensive material (including information held on oraccessed by computer) by whatever means; conduct that threatens, ridicules, intimidates or abuses, undermines or undervalues anindividual including derogatory or degrading remarks or insults, offensive comments aboutappearance or dress, spreading malicious rumours; open aggression, obscenities, uncontrolled anger; belittling in front of others, persistent criticism or sarcasm; suggestions that sexual favours may result in career advancement or some other employmentbenefit (or that refusal of such suggestions may result in some form of detriment); or unfair treatment, which might include deliberately excluding someone from social activitiesbecause they have or are perceived to have a protected characteristic or associate with aperson who does.The above is by no means an exhaustive list and harassment may come in another form notshown here.BullyingThere is no specific legal definition of bullying but it is considered to be offensive, abusive,intimidating, malicious or insulting behaviour and/or a misuse of power which makes the‘target’ feel upset, threatened, humiliated, vulnerable and/or undermined. Bullying can bedifficult to recognise as it may be subtle and not always face-to-face; for example, bullyingmay take place through social networking sites or via text messages and it tends to be morethan one single act carried out over a period of time.FCA Employee Handbook 2013 51

Examples of bullying may include but are not limited to:persistent unnecessary criticism;shouting at colleagues, whether in public or private;deliberately isolating a person by ignoring or excluding them;withholding information or removing areas of responsibility from a person withoutjustification;taking credit for others work, but never the blame when things go wrong;spreading malicious rumours;making inappropriate personal comments;blocking leave or training applications without reason;setting objectives with impossible deadlines with the deliberate intention of undermining anindividual;deliberately misrepresenting the views of others, including senior management to theindividual; and/orundermining a person's self-respect by condescending or threatening treatment thathumiliates, intimidates or demeans.Complaints and support availableYou may experience or witness behaviours from an individual or groups that you feel areunacceptable under this policy. We understand that this can be a difficult time, so we have setout a number of ways you can deal with such issues, either informally or formally, andprovided information on the support that is available. We believe that, wherever possible,issues are best dealt with promptly and informally. The Equality Complaints Procedure outlinesthe various options available to you to raise concerns.Neither bullying nor harassment will be tolerated by the FCA. Employees found to have bulliedand/or harassed are likely to face disciplinary action up to and including dismissal. Similarly,employees who raise allegations of bullying and harassment in bad faith or provide falseinformation may also face disciplinary action.Ownership, updates and query managementThis is the FCA's Bullying and Harassment Policy as at April 2013.The policy is owned by the FCA’s HR Division and has been developed in conjunction with theFCA's Staff Consultative Committee, Executive Diversity Committee, Corporate ResponsibilityTeam, and representatives from the internal Staff Network Groups.The policy is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.The policy will be monitored and reviewed every two years.Any questions on the application of the policy should be directed to the HR Helpline onextension 67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 52

Equality Complaints ProcedureStatement of intent and purposeOur Equality of Opportunity and Bullying and Harassment policies confirm our commitment toeliminating discrimination, victimisation, harassment (as defined by the Equality Act 21010)and bullying. Our Corporate Responsibility and Inclusion Statement outlines the expectationswe have of all staff and management in their behaviours to others through the FCA’s CulturalCharacteristics and Behavioural Framework.If you feel you have been unlawfully discriminated against, or the subject of bullying,harassment or victimisation, we encourage you to raise this as soon as possible. If we aremade aware of the issues, we can address them appropriately, while providing you with thelevel of support that you need to address the situation. We understand that experiencing suchsituations can be a difficult and upsetting time. Therefore, we want to provide a framework foraddressing such complaints in a way that you feel comfortable with.This procedure explains in detail where you can get help and suggests a number of ways thatyou can raise any incidents that you experience or witness, either informally or as a formalcomplaint. We have a formal complaints procedure in place to meet our legal obligations setout in the ACAS Code of Practice on Disciplinary and Grievance Procedures, but it is yourdecision whether you want to use this route to address your complaint. We also give a numberof examples of informal ways you can raise complaints and note various people you can speakto for advice.This procedure is separate from our Grievance Procedure which is used for all otheremployment-related complaints that are not connected to an equality matter.PrinciplesWhat you can expect from the FCAWe will take all complaints seriously and aim to investigate and address any complaint asquickly as possible.We will provide you with support through one or more of the contacts noted in the‘Support’ section.We will deal with all complaints sensitively and maintain confidentiality to the maximumextent possible.You will not be penalised for raising a complaint in good faith under this procedure(whether informally or formally) or supporting someone who is raising a complaint.We will establish the facts, conducting an investigation where required.We will provide support to all those involved in investigating the complaint - thecomplainant, the respondent and any witnesses.What the FCA expects from youIf you witness an incident that you believe is in breach of our Equality of Opportunity orBullying and Harassment policies, where the subject is an FCA employee, contractor,agency staff, supplier, client, or anyone else engaged to work on behalf of the FCA, youshould follow one of the steps to making a complaint.You must cooperate with any investigation under this procedure, whether you are thesubject of the incident(s), a witness, or the person accused of the incident. We understandthis can be difficult, so please be aware of the various levels of support available to you.You must maintain confidentiality at all times.How to make a complaint (informally or formally)FCA Employee Handbook 2013 53

Allegations of discrimination, victimisation, harassment and/or bullying can often be quicklyand effectively addressed if they are raised at an early stage and dealt with promptly. Weappreciate that making complaints of this kind can be difficult and sensitive and takes courageto do so. We therefore want to make sure that our staff are aware they have a variety of waysto deal with such matters.The Procedure provides a staged approach for dealing with concerns fairly and reasonablyaccording to the circumstances surrounding them, and the seriousness of the complaint. Whilewe want you to choose the option that you feel most comfortable with, the matter may have tobe referred through a more formal route if the investigator feels it would be more appropriatein the circumstances. This is because, as an employer we have a duty to protect our staff andmay have to pursue the matter independently if we consider it appropriate to do so. If this isnecessary, we will explain our reasons to you and provide you with appropriate support.SupportThe following people or teams can offer you support with your complaint, whether you raise itinformally or formally. You can talk to them in confidence and they will provide advice on howbest to deal with your situation:A member of the Corporate Responsibility Team (CRT);HR Helpline (who may refer you to another HR colleague);Staff RepresentativeAnother trusted colleague you feel could help;Equal Opportunities Officer;FCA’s employee assistance programme – a confidential external helpline;Specialist external helplines – e.g. National Bullying helpline.Stage Led by Timescales Support availableInformal optionsSpeak to or email theperson(s) directly, if youfeel comfortable to do soThe employeewho raised thecomplaintAs soon afterthe event aspossibleAny of theindividuals/teams notedaboveSpeak to your linemanager or anothertrusted senior colleagueyou feel comfortable withand you think could helpThe employeewho raised thecomplaintAs soon afterthe event aspossibleAny of theindividuals/teams notedaboveA facilitated discussionwith the individual(s)HR, FCA employeeor an externalspecialist providerAs soon afterthe event aspossibleAny of theindividuals/teams notedaboveFormal stagesFormal complaint – stage1Your HoD/Director(decision maker)or one from adifferent divisionOutcome within20 workingdays (unlessotherwiseinformed)Staff Rep; colleague,companion, EmployeeAssistance Programme(EAP), CRTFormal complaint – stage2 appealEqualOpportunitiesOfficer (decisionmaker)As aboveStaff Rep; colleague,companion, EAP, CRTFCA Employee Handbook 2013 54

Options to resolve issues informallyOften the best way to address issues is to try to sort them out informally and as soon afterthey occur as possible. The person(s) may not know that their behaviour is upsetting oroffending you, so you may feel that you can discuss this with them directly, or with thesupport of your manager or another person you feel comfortable with, (see support sectionabove). Tackling the situation using one of the examples noted below may also help to preventissues escalating to a point that you feel your only option is to raise a formal complaint (as setout below).You could address your complaint in a number of ways. For example: With the individual: speak to or email the person creating the problem to point out thattheir behaviour is unwelcome, upsetting or offensive to you and ask that they stop. With your manager or another person you feel comfortable with: raise the issuewith your line manager or another trusted senior person within the FCA. Ask them to set up ameeting between the parties involved with your chosen source of support in attendance. Atthis meeting you may want the manager/other person to speak on your behalf, or you mayfeel comfortable in addressing the issue yourself. You may not be comfortable being present at the meeting and so you could askyour manager/other trusted person to meet with the individual to discuss the issueon your behalf: as you won’t be present at the meeting, agree the message you want themto give to the individual, including the behaviour that you want to stop;A facilitated discussion between you and the individual(s) you are complainingabout: This would involve a meeting led by an impartial third party such as a member of HR,another FCA employee or someone from a specialist external provider, all of whom are trainedto deal with such situations. For this approach, all parties must be willing to attend themeeting. All parties will be given the opportunity to comment and the facilitator’s role will beto support you in trying to reach an agreed way forward to resolve the issue.Whichever of the suggestions above that you may decide to use, it will be helpful for you toconsider and be prepared to discuss the following:What the issue or behaviour was that upset you;How it made you feel;What you would like to change for the future;What outcome you are seeking;Whether you feel the issue can be resolved.Formal stage (start of the FCA’s Equality Complaints Procedure)Stage 1: formal complaint – Head of Department or Director: if you don’t feel that youcan address the matter informally, the complaint is too serious, or you have been unsuccessfulin trying to address the matter informally, you can raise a formal complaint in writing to yourHoD or Director. You should try to do this as soon after the incident as possible. If your HoDand Director are both directly involved in the allegations or you do not feel comfortable raisingit with them, you should contact the Employee Relations Specialist who will arrange for a HoDor Director from a different division to hear your complaint.Allegations will be taken seriously, treated confidentiality to the maximum extent possible, andinvestigated as quickly as possible. Employees will be protected against victimisation formaking a complaint or supporting a complainant in making a complaint (see Protectionsection).Remember that there are a number of people you can talk to for advice and support (see the“Support” section above”). If you haven’t already done so, it may be helpful to speak to one ofthem before making your final decision to raise a formal complaint.Making the complaintIn making a complaint under this procedure, you should state in your written complaint:FCA Employee Handbook 2013 55

the name of the person whose behaviour you believe amounts to discrimination, bullying,harassment or victimisation;the type of behaviour that is causing offence, together with specific examples ordocumentation;dates and times when and where the incident(s) occur(red);the names of any employees who witnessed the incidents, or who themselves may haveexperienced similar behaviour by the same person;any action that you have already taken to try to deal with the unwanted behaviour; andhow you would like the matter to be resolved.InvestigationThe HoD/Director (decision maker) has a duty to ensure the complaint is investigatedthoroughly, objectively and as discreetly as possible.Investigations will typically involve:speaking to you to so that you can give your account of events and how you think yourcomplaint can be addressed;speaking to the person(s) who is allegedly responsible for the behaviour (who has a rightto be told the details of the allegations against them so that they can respond) to heartheir account of events;speaking to any witnesses; andgathering and reviewing any relevant documentation (e.g. policies, copies of emails).Investigatory meetings will normally be carried out by an investigator appointed to support theHoD/Director; they will not have been involved in the case previously. The investigator may bea member of the HR Division or another FCA employee who has been trained in managinginvestigations.Information relied upon for the purpose of decision making (e.g. meeting notes, emails,documents, etc.) will be provided to you (as the complainant), so you can consider yourresponse. In exceptional circumstances, some information may have to remain confidential orbe redacted, but this will be explained to you and an appropriate summary of the informationprovided.Where your complaint is about an employee, we may consider suspending them on full paypending the outcome of the investigation, if circumstances require. We will also considerwhether it is appropriate to make any changes to your working arrangements or that of theperson(s) you have raised the complaint against during the investigation. For example, it maybe appropriate to make changes to your duties, your working hours and/or your place of workor those of the person you have complained about to minimise contact between you during theinvestigation. Although our decision as to any such changes will be final, as far as reasonablypracticable, we will seek to agree a suitable solution with all parties.Where your complaint is about someone other than an employee such as a contractor,customer, supplier or visitor, we will consider what action may be appropriate to protect youand anyone involved pending the outcome of the investigation, bearing in mind the FCA’sreasonable needs and the rights of that person. Where appropriate, we will discuss the matterwith the third party.Meeting to hear your complaintYou will be invited to a meeting to discuss the details your complaint. We will aim to hold themeeting as soon as reasonably practicable - ideally within 10 working days of receiving yourwritten complaint (subject to the completion of any prior investigation). At this meeting, youwill be asked to explain your complaint and how you think it can be addressed.FCA Employee Handbook 2013 56

A member of the HR Division will be present to provide procedural advice, as well as yourcompanion should you choose to bring one (see section, “Right to be accompanied”).Right to be accompaniedYou are entitled to be accompanied at any formal meeting to hear your complaint by acompanion who may be a Staff Representative or another FCA employee of your choice whomay be a friend or colleague. Please note that the fellow employee should not be a member ofthe HR Division. Alternatively, you may be accompanied by a Trade Union official. You mayconfer with your companion during the meeting, and they may address the meeting, but maynot answer questions on your behalf.The meeting may be postponed, at your request, for up to 5 working days if your chosencompanion is not available to attend on the date set for the meeting. If your companion cannotmake the revised date, you will need to find an alternative companion.The outcomeAs soon as possible following the meeting to hear your complaint (ideally within 20 workingdays, unless you are informed otherwise), the HoD/Director will decide on what action, if any,to take. The complaint may be wholly upheld, partially upheld or wholly rejected. TheHoD/Director will inform you of their decision in writing and offer you the option of meetingface-to-face.If your complaint is upheld in whole or in part, prompt action will be taken to address thediscrimination, victimisation, harassment and/or bullying.Where the person(s) who has allegedly carried out the bullying or harassment is an employee,the matter may be dealt with as a case of possible misconduct or gross misconduct under theDisciplinary Procedure.Where the person(s) who has allegedly carried out the bullying or harassment is a third party,appropriate action might include speaking or writing to the person and/or their superior abouttheir behaviour or, in very serious cases, banning them from the premises or terminating theFCA’s contract with them.Whether or not your complaint is upheld, we will consider how best to manage the on-goingworking relationship between you and those about whom you have complained. We mayconsider it appropriate to arrange some form of mediation and/or counselling, or to change theduties, working location or reporting lines of one or both parties. In such situations, we willconsider each case on its own merits.Any person who deliberately provides false information or otherwise acts in bad faith in makinga complaint or as part of an investigation may be subject to action under the FCA’s DisciplinaryProcedure.Stage 2: the right of appeal to the Equal Opportunities OfficerIf you are dissatisfied with the outcome of your complaint, you can appeal to the EqualOpportunities Officer. You should appeal in writing within 10 working days of receiving thedecision in Stage 1.The Equal Opportunities Officer may nominate a representative to hear the appeal on theirbehalf. A meeting will be held with you and the Equal Opportunities Officer or theirrepresentative to discuss the grounds of your appeal. This will usually take place within 10working days of receipt of your notice of appeal (subject to the need to carry out any furtherinvestigations arising from your grounds of appeal). You may be accompanied at the appealhearing (see the Right to be Accompanied section).FCA Employee Handbook 2013 57

You will be informed in writing of the decision of the Equal Opportunities Officer (or theirnominated representative) ideally within 20 working days of the appeal hearing. Their decisionwill be final.TimelinesThe timelines provided in the procedure are intended as a guideline. Although we will makeevery effort to conclude the investigation and determination of your complaint within thespecified timescales of this procedure, it may prove impossible to meet these timelines – forexample if key individuals are out of the office for any reason, or there are a number ofwitnesses to be spoken to. Similarly, the timescales may need to be extended if the matter isparticularly complex and requires detailed investigation. In these circumstances you will betold the date by which you can expect a response and every effort will be made to completethe process as quickly as possible.ProtectionThose who make complaints or who participate in good faith in any investigation conductedunder this Equality Complaints Procedure must not suffer any form of retaliation orvictimisation as a result.If you believe you have suffered any such treatment you should immediately inform yourDirector or the HR Helpline who will advise you on next steps.Anyone found to have retaliated against or victimised someone for making a complaint orassisting in good faith with an investigation under this procedure will be subject to disciplinaryaction under our Disciplinary Procedure.Who is covered by this procedure?This procedure covers all FCA employees.Ownership, updates and query managementThis is the FCA's Equality Complaints Procedure as at April 2013.The procedure is owned by the HR Division and has been developed in conjunction with theFCA's Staff Consultative Committee, Executive Diversity Committee, Corporate ResponsibilityTeam, and representatives from the internal Staff Network Groups.The procedure is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.The procedure will be monitored and reviewed every two years.Any questions on the application of the procedure should be directed to the HR Helpline onextension 67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 58

5. Family LeaveAdoption PolicyStatement of purpose and intentThe FCA’s Adoption Policy incorporates statutory requirements on adoption rights and, in anumber of areas, offers more generous provisions than required by law, so that we cansupport our employees who take adoption leave.The FCA’s policy on adoption leave is split into two parts:Adoption leave and pay for individuals who adopt; or the ‘main adoptive parent’ in acouple where a couple adopt jointly. You may decide with your partner who takes mainadoption leave.Paternity adoption leave for the ‘supporting parent’ i.e. the partner of an individual whoadopts or the other member of a couple who adopt jointly.PrinciplesWhat you can expect from the FCAWhen returning from Ordinary Adoption Leave (OAL) you will generally be entitled toreturn to the same job on the same terms and conditions as if you had not been absent.When returning from Additional Adoption Leave (AAL) we will endeavour to return you tothe same job unless this is not reasonably practicable, in which case you will, ifpracticable, be offered suitable and appropriate alternative work on comparable terms andconditions.We will provide you with enhanced adoption pay and a return-to-work bonus whereapplicable and you are eligible (see below).What the FCA expects from youYou must:Comply with all of the eligibility and notification requirements detailed in this policy (N.Bthese are statutory);Make a flexible working request in good time if you want to vary your working pattern onyour return to work;Use up your core and bank holiday entitlement before you start adoption leave or at theend of your leave period (where possible in the same holiday year) before returning towork;Give the relevant notice as stated in your contract if you decide not to returnto work;Repay in full any enhanced adoption payments, e.g. return-to-work bonus, if you do notreturn to work after your adoption leave; if you leave within three months of your returnto work following your adoption leave; or if you leave after a period of career or parentalleave that immediately follows your adoption leave.The policyFCA Employee Handbook 2013 59

Definitions“Expected week of placement” (UK adoptions) – the week that the child isanticipated to be placed for adoption with you and your partner;Matching certificate (UK adoptions) – confirms that the named person(s) has beenmatched with a child for adoption; andOfficial notification (overseas adoptions) – a certificate issued by, or on behalf of, therelevant domestic authority (usually the Department for Education), that confirms that theadopter has been approved as being a suitable adoptive parent.EligibilityTo qualify for adoption leave, you must:be our employee;be newly matched with a child for adoption by an approved adoption agency (UKadoptions) / have received official notification from the relevant UK authority of youreligibility to adopt a child (overseas adoptions);have notified the adoption agency that you agree the child should be placed with you foradoption and of the date of placement (UK adoptions);have been continuously employed by the FCA for at least 26 weeks by the end of the weekin which you are notified of being matched with a child for adoption (UK adoptions) / bythe time you have received official notification or your adoption leave is due to start,whichever is later (overseas adoptions); andprovide a matching certificate of evidence of your entitlement to adoption leave (UKadoptions) / a copy of the official notification (overseas adoptions).You will not be eligible for adoption leave and pay if your child is not newly matched foradoption, for example, if you are a step-parent adopting yourpartner’s children.Notification requirementsIn order to be entitled to take adoption leave you are required to give us written notificationwithin 7 days of being notified by your adoption agency that you have been matched with achild for adoption, or as soon as reasonably practicable after that. The written notification tothe HR Helpline should give the dates:you were notified of being matched with a child;the child is expected to be placed with you; andwhen you want your adoption leave to start (see below, “Starting adoption leave”).At the same time you must provide a copy of your matching certificate (UK adoptions) / a copyof the official notification (overseas adoptions).If you wish to claim Statutory Adoption Pay (SAP), you must also give the HR Helpline writtennotice of your wish to claim SAP – you can get a form for this from the HR Helpline and youmust provide notice for SAP at least 28 days before you want your SAP to start.FCA Employee Handbook 2013 60

We will acknowledge receiving your notice within 28 days and confirm the start date of youradoption leave and your expected return date based on if you take your full entitlement ofadoption leave.Length of adoption leaveProvided you meet the eligibility conditions and comply with the notice requirements below,you can take up to 26 weeks’ Ordinary Adoption Leave (OAL) and a further 26 weeks’Additional Adoption Leave (AAL). AAL leave begins the day after the last day of your OAL.Starting adoption leaveAdoption leave can start on any day of the week. You can choose to begin your adoption leave:UK adoptions - from the first day the child is placed with you for adoption, whether this isearlier or later than expected; or from a fixed date, which can be up to 14 days before theexpected date of placement;Overseas adoptions - from the date the child enters the UK or a fixed date that is no laterthan 28 days after the child enters the UK.You will be entitled to only one period of leave irrespective of whether more than one child isplaced for adoption as part of the same arrangement.If your child’s placement ends during the adoption leave period, you will be able to continueadoption leave for up to 8 weeks after the end of the placement.Change in Adoption Leave and Statutory Adoption Pay (SAP) dateYou will be able to change your mind about the date you want your adoption leave and SAP tostart, provided you give your line manager and the HR Helpline at least 28 days’ writtennotice. If it is not possible for you to give notice in time, you must give notice as soon as isreasonably practicable or, if this is not possible, as soon as is reasonably practicable.Statutory Adoption Pay (SAP)During your adoption leave, you may be entitled to receive Statutory Adoption Pay (SAP). Toqualify for SAP you must:be our employee;have at least 26 weeks service by: the end of the week in which you are notified of beingmatched with a child for adoption (UK adoptions) / by the later of the week you receiveofficial notification or when you want SAP to begin (overseas adoptions);have average weekly earnings of not less than the lower earnings limit for the payment ofNational Insurance Contributions (NIC);have given the FCA the required notice of adoption leave and provided the FCA with amatching certificate (UK adoptions) / a copy of the official notification (overseasadoptions);be on adoption leave; andhave elected in writing to receive SAP (a form for this purpose is available from the HRHelpline).You will not be eligible for SAP where:FCA Employee Handbook 2013 61

you have elected to receive Statutory Paternity Pay (SPP); oryour child is, or expected to be, placed for adoption with you, and your partner haselected to receive SAP; oryou are receiving Statutory Sick Pay.SAP is payable for a maximum of 39 weeks and is only payable if you are absent from work onadoption leave. This consists of 26 weeks Ordinary Adoption Leave and 13 weeks AdditionalAdoption Leave. You can elect your SAP to start:on the date on which your child is placed with you for adoption or, if you are at work onthat date, on the following day; or on a predetermined date chosen by you which is noearlier than 14 days before you are due to be matched with a child and no later than thatdate (UK adoptions);on the date the child enters the UK or a fixed date, no later than 28 days after the childenters the UK (overseas adoptions).However, in any case it will begin no earlier than 28 days after you have given notice of yourclaim for SAP.The rate of SAP is the same as the standard rate of Statutory Maternity Pay (SMP) – see theHMRC website for current rates. SAP is payable for 39 weeks at the flat rate set down bystatute or 90% of your average weekly earnings if this is lower.SAP will be paid into your bank account on the same date that your adjusted salary wouldhave been payable and will be subject to deductions for tax and national insurance in the usualway.If you do not qualify for SAP you may be entitled to financial support from your local authority.The HR Helpline will give you the information you need to makea claim.Please note that you cannot receive both your SAP and basic pay within the same week.Therefore, if you return to work part-way through a week before the end of the 39 week SAPperiod, you will lose your SAP entitlement for that week. SAP is calculated in weeklyinstalments; however the start of the week can vary depending on the commencement date ofyour adoption leave.If you do decide to return “mid-week” before the end of your 39 week SAP period, you coulduse one of more of your 10 KIT days (see below), to avoid losing SAP as noted above.Pay, benefits and contract of employmentFor the first 12 weeks of Ordinary Adoption Leave (subject to all the requirements set upabove), your adoption pay will be enhanced to 100% pay.While you are on adoption leave i.e. ordinary and additional, providing you have given therequired notice as detailed above, the following applies:All contractual benefits which you were receiving immediately before you began youradoption leave will continue with the exception of remuneration (i.e. wages or salary andany contractual allowances) (see sections on SAP and FCA enhanced payments);Holiday entitlement will continue to accrue (see the holiday FAQs on My FCA Hub). Youshould use up your core holiday and bank holiday entitlement before you start OAL or at theFCA Employee Handbook 2013 62

end of your leave period (where possible in the same holiday year) before returning to work,i.e. tack your holiday onto the end of OAL or AAL. If you cannot take it at that time you canchoose from the following options:1. Any outstanding holiday for the year which you cannot take before adoption leavestarts must be taken within 12 months of your return to work, or you will lose it; or2. Request via the HR Helpline that any accrued and untaken holiday in excess of thestatutory holiday entitlement (i.e. for full-time employees this is 20 of the core daysplus the normal 8 bank holidays; pro-rated for part-time employees) be bought backby the FCA. This sum will be paid at the end of your adoption leave period or any timeup to the end of the holiday year in which your adoption leave ends (see the HolidayPolicy - “Holiday Payments” section for details of how this will be calculated). Pleasenote, you must make this request before the end of the holiday year in which youreturn from adoption leave;We will continue to pay contributions to the FSA Pension Plan on your behalf for as long asyou are being paid SAP; andYou will be entitled to be considered for Pay Review during adoption leave. Any AnnualIndividual Incentive that you are awarded will be pro-rated by the number of working daysyou are absent due to taking Additional (unpaid) Adoption Leave.If you return to work after a period of adoption leave and work continuously for the FCA for 12calendar months (other than on authorised holiday or sickness absence), the FCA will ensurethat:your pensionable service for the purposes of the FSA Pension Plan is treated as continuousservice (i.e. it includes the full period of Additional Adoption Leave and not just the 26week Ordinary Adoption Leave); anda special employer contribution is made to the FSA Pension Plan on your behalf. This willcover the full period of Additional Adoption Leave (and not just the period when youreceive SAP) at the contribution rate that applied when you went on leave.If you are unable to return to work following adoption leave due to sickness the above pensionprovisions will not be made until you have returned to work for a continuous period of 12months.For both statutory and contractual purposes, continuity of employment is not broken byadoption leave. The period of adoption leave counts as a period of continuous employment forstatutory and contractual purposes, except for membership of the FSA Pension Plan (subject tothe provisions in the “Return-to-work bonus” section below).Your Contract of Employment with the FCA will continue during OAL and AAL except for theterms in relation to remuneration and the arrangements described above. During youradoption leave you will not, of course, be required to work nor will the FCA be required toprovide you with work, unless you are taking one of your “keeping-in-touch days” (see sectionbelow for further details).If you do not intend to return to work following adoption leave, you must give normal writtennotice of your resignation to the FCA in line with your contract of employment. If you fail togive notice and fail to return to work at the end of your relevant period of leave (withoutinforming the FCA of an authorised reason for absence such as sickness), you will be treatedas having resigned from the FCA. Your employment and contract will come to an end as aresult of your resignation. Failure to return to work means you will not qualify for the return toFCA Employee Handbook 2013 63

work arrangements described below and will be required to repay any enhanced adoptionpayments made to you during your adoption absence period.Transfer of adoption leaveIf you propose to return to work early without using your full 52-week entitlement to adoptionleave (by giving the appropriate amount of notification of your early return as set out above),you may transfer up to 26 weeks of your outstanding AAL and SAP to your spouse, civilpartner or partner, provided you have returned to work. You must have at least 2 weeks’ SMPleft. Once you have returned to work, this will become their Additional Paternity Leave (APL)and Additional Paternity Pay. Your partner does not have to be an FCA employee.The earliest that they can start APL is 20 weeks after the placement of your child and it mustend no later than 12 months after the date of placement. A minimum of 2 weeks and amaximum of 26 weeks APL can be taken, depending on the amount of leave you decide totake. Your spouse/partner’s employer may ask you to provide additional information and sign adeclaration form to confirm their eligibility to take APL/APP.For further information on the FCA’s Paternity arrangement please see the Additional PaternityLeave Policy below and the Paternity Leave Policy.Contact during adoption leaveShortly before you go on adoption leave, we will discuss the arrangements for keeping in touchduring that time. We reserve the right to maintain reasonable contact with you. This may be todiscuss your plans to return to work, keeping-in-touch days (see below) or to update you onwork developments during your absence, etc.Return-to-work bonusIf you return to work with the FCA after a period of at least 12 weeks’ adoption leave (whetherordinary or additional leave), you will be entitled to receive a return-to-work bonus. The bonuswill be either 6 weeks’ pensionable salary (at the rate payable when your adoption leavestarted) or £3,300, whichever is the greater. The return-to-work bonus will be subject todeductions for tax and NIC.You may elect to receive your return-to-work bonus at any time up to 3 complete calendarmonths after your return to work. You can choose how and when you would like to receiveyour return-to-work bonus as follows:To be paid between weeks 13 to 24 of your adoption leave. This is in addition to SAPentitlement (weeks 1-39);To be paid between weeks 40 to 51 of your adoption leave. SAP is not paid during thisperiod;A lump sum at any point during your adoption leave; orIn the fourth month’s salary payment after your return to work.Prior to commencing your adoption leave, you will receive an adoption bonus form from HRTransactions, allowing you to select one of the above options for receiving your payment.If you stop working for the FCA within 3 months of returning to work from adoption leave,having received your return-to-work bonus, you will be required to repay the full amount. Ifyou have not received it at this time, such payment will be forfeited.FCA Employee Handbook 2013 64

If you take career or parental leave immediately following a period of adoption leave, and youdecide to resign at the end of that period, you must pay back the return-to-work bonus paid toyou in full.Shared adoption/paternity leave between FCA employees and the return-to-workbonusIf you and your partner are both employed by the FCA and share adoption/paternity leave, thereturn-to-work bonus will be paid to only one of you. Between you, you should nominate whowill receive this bonus by noting this on this relevant form.‘Keeping in touch’ days (KIT)To support occasional training, or help keep in touch without losing SAP, the Governmentintroduced ‘Keeping in Touch’ (KIT) days during adoption leave. These KIT days allow the FCAand you to make reasonable contact during an adoption period. In addition, if you are onadoption leave you can still work for us for up to 10 days by mutual agreement without losingSAP. An example of a KIT day could be to attend a divisional away-day, training or refreshercourses. It should not be used to introduce friends and colleagues to new family members.Important points to note include the following:You can come into the office for one hour or a whole day. This will be counted as a full dayfor these purposes;The decision to take a KIT day and when that KIT day will be taken, must be made byagreement between you and the FCA;The KIT day will not bring your adoption leave to an end;We have no right to demand that you undertake any such KIT work and you cannot insistthat you undertake such work; andYou will be paid at your normal daily rate for each KIT day worked, without losing SAP.For example, if you are absent from work on adoption leave from Monday 21 May for 39 weeksand return to work for two days a month in September, October, November, December andfinally January you would not lose any SAP.Returning from adoption leaveIf you return to work at the end of your full adoption leave period you do not need to notify usin advance of the date of your return. Unless you notify us otherwise (see below), the date onwhich you return to work will be the first working day after the end of your 26 weeks’Additional Adoption Leave.If you wish to return to work before the end of your full adoption leave period, you must giveyour line manager not less than 8 weeks’ advance written notice. If you fail to do so, yourreturn to work may be postponed to a date that will ensure that the notice period is served.The job that you will be entitled to return to will be as follows:returning after OAL – you will generally be entitled to return to the same job on the sameterms and conditions as if you had not been absent;returning after AAL – where possible, you will be entitled to return to thethe same job on same terms and conditions unless this is not reasonably practicable, inwhich case you will be entitled to be offered suitable and appropriate alternative work oncomparable terms.FCA Employee Handbook 2013 65

You may find it helpful to keep in touch with your line manager during your adoption leave. Ifyou do not wish to return to work at all after adoption leave, you must give the FCA yournormal written notice of resignation as required in your Contract of Employment.Flexible workingIf you wish to vary your working pattern on return from adoption leave, you have the right torequest a flexible working pattern, as explained in the Flexible Working Policy. You might(subject to the requirements of that policy) wish to mention to your line manager before yougo on adoption leave that you are interested in applying to work flexibly on your return. Bearin mind that you may need to attend meetings at the office so that your request can beproperly considered. If you want the changes to take effect on your return from adoptionleave, you should make your application within the appropriate timescales before your return;using the appropriate application form (a hard copy of the eform is available from HRTransactions).Paternity leave and pay for adoptive parentsSee the Definitions section at the start of the Adoption Policy.You may be entitled to paternity leave and pay where you, your spouse/civil partner/partner orboth of you adopt a child and the adopted child is matched with either of both of you. Youcannot take paternity leave on top of adoption leave, but you may decide that your partner willtake main adoption leave and you will take paternity leave.Eligibility for Ordinary Paternity Leave - adoption (OPL)You need to satisfy the following conditions to qualify for paternity leave. You must:not be taking adoption leave;have or expect to have responsibility for the child’s upbringing;be married to or be the partner/civil partner of the child’s adopter (a person who lives withthe adopter in an enduring family relationship but is not a blood relative);have worked continuously for the FCA for 26 weeks by: the end of the week in which yourpartner is notified of being matched with a child for adoption (UK adoptions) / by the timeyour partner has received official notification (overseas adoptions), andprovide a matching certificate of evidence of your entitlement to paternity adoption leave(UK adoptions) / a copy of the official notification (overseas adoptions).Length of paternity leave (adoption)Ordinary Paternity Leave (OPL – adoption)You are entitled to choose to take either one week or two consecutive weeks of paid OPL (notodd days). You can choose to start your leave:from the first day the child is placed for adoption (whether this is earlier or later thanexpected), or from a chosen number of days or weeks after the date of the child’splacement whether this is earlier or later than expected (UK adoptions); orfrom the date the child enters the UK, or from a fixed date which is later than the date thechild enters the UK (overseas adoptions).FCA Employee Handbook 2013 66

Leave can start on any day of the week or following the child’s placement but must becompleted within 56 days of the child’s placement. You will be entitled to only one period ofleave irrespective of whether more than one child is placed together.Notification requirements before starting OPL (adoption)In order to be entitled to OPL, within at least 7 days of you or your partner being notified bythe adoption agency that you have been matched with a child (UK adoptions) / 28 days afteryour partner receives official notification (overseas adoptions), you should submit a request forPaternity Leave via Employee Self-service on Chrysalis of the following:• the date you or your partner were notified of being matched with a child (UK adoptions) /received official notification (overseas adoptions);• the date the child is expected to be placed with you (UK adoptions) / enters the UK(overseas adoptions);• whether you wish to take one or two weeks’ leave; and• the date you want your leave to start - see Length of paternity leave (adoption).You should, as soon as reasonably practicable, inform the HR Helpline in writing, when yourchild is placed for adoption / enters the UK.We will respond in writing to your notification of OPL (adoption) within 28 days, to confirmstart and end dates.Change in OPL (adoption) date and early/late placementYou will be able to change your mind about the date you want your OPL to start provided yougive your line manager and the HR Helpline at least 28 days’ written notice of the new date or,if this is not possible, as soon as is reasonably practicable.If your child is not placed by the date you specified, you can change the date or choose to takeleave from the actual date of placement or a specified number of days after the placement,provided you give at least 28 days’ written notice of the new date or, if this is not possible, assoon as is reasonably practicable.If your child is placed before it is planned, you may not have given notice of your intention toclaim OPL. In this instance you should confirm in writing as soon as is reasonably practicable.Additional Paternity Leave (APL - adoption)You may be entitled to take up to 26 weeks APL within the first year after your child’splacement provided that you satisfy all of the qualifying criteria for OPL as outlined above andthe mother/adopter has returned to work before using his/her full entitlement to adoptionleave. There are a number of additional conditions to APL:the earliest that APL can start is 20 weeks after the date the child is placed (UK adoptions)/enters the UK (overseas adoptions) for adoption and it must end no later than 12 monthsafter that date;it must be taken in a single block in multiples of complete weeks;the minimum period of APL is 2 weeks and the maximum is 26 weeks; and a gap is permitted between the completion of the mother/adopter’s adoption leave andyour APL, providing the above conditions are met.FCA Employee Handbook 2013 67

Notification requirements before starting APL (adoption)At least 8 weeks before you wish to take leave, you must complete the Additional PaternityLeave request form (contact the HR Helpline for a copy) which:gives notice of the date you wish to start and end APL and ASPP (adoption);gives notice of the date your child is expected to be placed for adoption;confirms the date the actual date of placement;confirms the purpose of the APL and ASPP (adoption) is to care for the child;confirms you satisfy the eligibility conditions for APL and ASPP (adoption).The form also includes a section for the primary adopter to complete to confirm:his/her names, address, and national insurance number;the date he/she intends to return to work;the date he/she has given notice to his/her employer of returning to work;that he/she is entitled to SAP;start date of his/her adoption leave;confirmation that you satisfy the relationship eligibility criteria;that he/she consents to the FCA processing the information in the form;that you are the only applicant for APL and/or ASPP (adoption) for that child; anda signature from the HR department of the primary adopter’s employers.If you intend to take parental leave immediately after or before your paternity leave, wesuggest that you give notice of this at the same time that you give notice for paternity leave,but at least 21 days before you intend your parental leave to start.We will respond in writing to your notification of APL within 28 days, to confirm start and enddates of APL and ASPP (adoption).Change in APL dateYou will be able to change your mind about the date you want your APL to start provided yougive your line manager and the HR Helpline at least 6 weeks’ written notice of the new date or,if this is not possible, as soon as is reasonably practicable.Statutory Paternity Pay (ASPP - adoption) and FCA benefitsFor information on pay, benefits and your contract of employment during paternity leave,please refer to the FCA’s Paternity Leave Policy.Contact during paternity leave (adoption), “keeping in touch days”, and returning toworkPlease see the Paternity Leave Policy.Who is covered by this policy?FCA Employee Handbook 2013 68

This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Adoption Leave Policy as at January 2012. The policy is owned by the HRDivision and has been developed in conjunction with the Staff Consultative Committee.The policy is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to the HR Helpline onextension 67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 69

Maternity PolicyStatement of intent and purposeThe FCA’s Maternity Policy incorporates statutory requirements on maternity rights and insome areas offers more generous provisions than required by law, so we can support ouremployees who take maternity leave.PrinciplesWhat you can expect from the FCAWe will:Give you paid time off during working hours to receive antenatal care;Ask the Occupational Health Adviser (OHA) to contact you to arrange a risk assessment toensure your working conditions are suitable;When returning from Ordinary Maternity Leave (OML) you will generally be entitled toreturn to the same job on the same terms and conditions as if you had not been absent;When returning from Additional Maternity Leave (AML) we will endeavour to return you tothe same job unless this is not reasonably practicable, in which case you will, ifpracticable, be offered suitable and appropriate alternative work on comparable terms andconditions; andWe will give you enhanced maternity pay and a return-to-work bonus, where applicableand you are eligible (see below).What the FCA expects from youYou must:Comply with all of the eligibility and all notification requirements detailed inthis policy (N.B. these are statutory).Make a flexible working request in good time if you want to vary your working pattern onyour return to work;Use up your core and bank holiday entitlement before you start maternity leave or at theend of your leave period (where possible in the same holiday year) before returning towork;Give the relevant notice as stated in your contract if you decide not to returnto work;Repay in full any enhanced maternity payments, e.g. return-to-work bonus, if you do notreturn to work after your maternity leave; if you leave within three months of your returnto work following your maternity leave; or if you leave after a period of career or parentalleave that immediately follows your maternity leave.This policy should be read alongside the FCA’s Maternity webpages.The policyDefinitionsThe following definitions are used in this policy:FCA Employee Handbook 2013 70

“Expected week of childbirth (EWC) means the week, starting on a Sunday, during whichthe midwife or doctor expects you to give birth;“Qualifying week” means the 15 th week before the EWC; and“MAT B1” means the certificate from the midwife or doctor with your EWC.Notification requirementsOn becoming pregnant, you should notify your line manager and HR Helpline as soon aspossible. This is important as there are Health & Safety considerations for you and the FCA. Atleast 15 weeks before your EWC complete the “Confirmation of pregnancy” eform (see theFCA’s maternity webpages for details) to tell them:that you are pregnant;the date on which you want your maternity leave to start; andthe week in which your child is expected to be born (EWC).You can change your mind about when you want to start your leave by letting your linemanager and the HR Helpline know (in writing) at least 28 days before the revised date. Youmay only give shorter notice if it has not been reasonably practicable for you to comply withthis timeframe.If you have not already done so, you should make sure that you also enclose your signed formMAT B1. HR Transactions will acknowledge they have received your notification within 28 daysand will confirm the start date of your maternity leave and the end of additional maternityleave.If you fail to do the above you may lose your rights to maternity leave, Statutory MaternityPay (SMP) and any additional maternity related payments.Time off for antenatal careYou are entitled to take reasonable paid time off during your normal working hours to receiveantenatal care, irrespective of length of service. Antenatal care includes appointments withyour GP, hospital clinics and any other appointments (for example relaxation or parentingclasses) made on the advice of a registered medical practitioner, doctor, nurse, midwife orhealth visitor. You should give your line manager as much notice as possible of the times whenyou will be absent from work and try to arrange the appointments as near to the start or theend of the working day as possible. Your manager may ask you to produce your appointmentcard before permission is granted for time off. If you work flexi-time, your absence to attendappointments will be credited to your flex hours.Health and safetyHR Transactions will advise the Occupational Health Adviser (OHA) that you are pregnant. TheOHA will then contact you to arrange a suitable time for a risk assessment. Once completed, areport will be sent to your line manager and the HR Helpline which may recommend that yourworking conditions are altered or that you are offered another more suitable job for theduration of your pregnancy. If neither of these options is possible, we reserve the right to sendyou home on full pay until you are no longer at risk. This may be for the remainder of yourpregnancy until the start of your maternity leave.You may need a further risk assessment if you decide to work after the start of the fourthweek before your child is due.FCA Employee Handbook 2013 71

Maternity leaveOrdinary maternity leave (OML)You are entitled to a 26-week period of ordinary maternity leave irrespective of your length ofservice or the number of hours you work each week. You cannot work at any time during thetwo-week period immediately after the date of childbirth. This is a compulsory maternity leaveperiod where working is prohibited.Additional maternity leave (AML)You will be entitled to additional maternity leave irrespective of your length of service or thenumber of hours you work each week. This entitles you to a further26 weeks’ leave, making the total maternity leave period 52 weeks. AML starts on the dayafter OML ends.Starting maternity leaveYou can start your OML at any time from the start of the 11th week before your ExpectedWeek of Childbirth (EWC) i.e. the beginning of the week in which your baby is due. The onlyexceptions to this are:If you are absent for a pregnancy-related reason at any time after the start of the fourthweek before your child is due. In this case, your maternity leave will start on the day afteryour first day of absence.If your child is born before you intended to start your maternity leave. In this case yourmaternity leave starts on the day after your child is born. You must – as soon asreasonably practical – notify us that you have given birth and the date your baby wasborn.You can change the date you want to start your OML and SMP, provided you give us at least28 days’ written notice. If it is not possible for you to give this notice in time, you must givenotice as soon as reasonably practicable. You must complete a new form when you changeyour mind about your OML/SMP dates.Statutory maternity pay (SMP)SMP is payable for up to 39 weeks. To qualify for SMP you must:have been continuously employed by the FCA for at least 26 weeks at the end of thequalifying week and you are still in employment at the end of that week;have average weekly earnings of not less than the lower earnings limit for the payment ofNational Insurance Contributions (NIC);still be pregnant at the 11th week before your EWC or have given birth before that date;have stopped working wholly or partly because of pregnancy;have given the FCA proper notice of maternity absence(see below);have provided evidence of your EWC (your MAT B1 certificate); andbe taking maternity leave.You will get SMP whether or not you intend to return to work and you do not have to pay itback if you do not return to work for any reason. SMP is only payable if you are absent fromwork on maternity leave. The exact amount of the SMP that you are entitled to receiveFCA Employee Handbook 2013 72

depends on your earnings and the amount of maternity leave you take. But as a general rule,you can expect to receive:higher rate SMP for the first six weeks (equal to 90 per cent of your average weeklyearnings in the qualifying period. The qualifying period is the eight-week periodimmediately preceding the 14th week before your EWC); andlower rate SMP for up to 33 weeks after that – see the HMRC website for current SMPrates.Our Payroll Team will give you details of your individual entitlement. SMP will be paid into yourbank account on the same date that your adjusted salary would have been payable and will besubject to deductions for tax and national insurance contributions in the usual way. If you donot qualify for SMP you may be entitled to claim state Maternity Allowance. The HR Helplinewill give you information on how to make a claim.Please note that you cannot receive both your SMP and basic pay within the same week.Therefore, if you return to work part-way through a week before the end of the 39 week SMPperiod, you will lose your SMP entitlement for that week. SMP is calculated in weeklyinstalments; however the start of the week can vary depending on the commencement date ofyour maternity leave.If you do decide to return “mid-week” before the end of your 39 week SMP period, you coulduse one of more of your 10 KIT days (see below), to avoid losing SMP as noted above.As well as SMP, you may be entitled to FCA enhanced pay – see the section FCA payments inaddition to Statutory Maternity Pay (SMP)Pay, benefits and your contract of employmentSubject to all the requirements set out above, the FCA will enhance your SMP to 100% pay inthe first 12 weeks of your maternity leave. See the FCA’s maternity webpages for furtherdetails.If you are on maternity leave (ordinary and/or additional), and providing you have given therequired notice as detailed above, you will be entitled to the following:All the contractual benefits which you were receiving immediately before you began yourmaternity leave will continue except remuneration (i.e. wages or salary and anycontractual allowances) (see sections on SMP and FCA enhanced payments above);Holiday entitlement will continue to accrue (see the holiday FAQs on My FCA Hub). Youshould use up your core holiday and bank holiday entitlement before you start OML or atthe end of your leave period (where possible in the same holiday year) before returning towork, i.e. tack your holiday onto the end of OML or AML. If you cannot take it at that timeyou can choose from the following options:1. Any outstanding holiday for the year which you cannot take before maternity leavestarts must be taken within 12 months of your return to work, or you will lose it; or2. Request via the HR Helpline that any accrued and untaken holiday in excess of thestatutory holiday entitlement (i.e. for full-time employees this is 20 of the core daysplus the normal 8 bank holidays; pro-rated for part-time employees) be bought backby the FCA. This sum will be paid at the end of your maternity leave period or anytime up to the end of the holiday year in which your maternity leave ends (see theHoliday Policy - “Holiday Payments” section for details of how this will be calculated).FCA Employee Handbook 2013 73

Please note, you must make this request before the end of the holiday year in whichyou return from maternity leave;We will continue to pay contributions to the FSA Pension Plan on your behalf for as long asyou are being paid SMP; andYou will be entitled to be considered for Pay Review during maternity leave. Any AnnualIndividual Incentive that you are awarded will be pro-rated by the number of workingdays you are absent due to taking Additional (unpaid) Maternity Leave.In addition, if you return to work after a period of Additional Maternity Leave and workcontinuously for the FCA for 12 calendar months (other than on authorised holiday or sicknessabsence), the FCA will ensure that:your pensionable service for the purposes of the FSA Pension Plan is treated as continuousservice (i.e. it includes the full period of AML and not just the 26 weeks’ OML); anda special employer contribution is made to the FSA Pension Plan on your behalf. This willcover the full period of additional maternity absence at the contribution rate when yourmaternity leave began.If you are unable to return to work following maternity leave due to sickness the abovepension provisions will not be made until you have returned to work for a continuous period of12 months.For both statutory and contractual purposes, continuity of employment is not broken by OMLor AML. The period of maternity leave counts as a period of continuous employment forstatutory and contractual purposes, except for membership of the FSA Pension Plan (subject tothe provisions in the “Return-to-work bonus” section below).Your employment with the FCA will continue during OML and AML. During this period you willnot, of course, be required to work nor will the FCA be required to provide you with work,unless you are taking one of your “keeping-in-touch days” (see section below for furtherdetails).If you decide not to return to work after maternity leave, you must give the relevant notice asstated in your Contract of Employment. If you fail to give notice and fail to return to work atthe end of your relevant period of leave (without informing the FCA of an authorised reason forabsence, such as sickness), you will be treated as having resigned from the FCA. Youremployment and contract will come to an end as a result of your resignation. Failure to returnto work means you will not qualify for the return to work arrangements described below andyou will be required to repay any enhanced maternity payments made to you during yourmaternity leave period (i.e. what you have been paid, minus SMP).Transfer of maternity leave to a partnerIf you propose to return to work early without using your full 52-week entitlement to maternityleave (by giving the appropriate amount of notification of your early return as set out above),you may transfer up to 26 weeks’ of your outstanding AML and SMP to your spouse, civilpartner or partner, or the father of your child, provided you have returned to work. You musthave at least 2 weeks’ SMP remaining. Once you have returned to work, this will become theirAdditional Paternity Leave (APL) and Additional Paternity Pay. Your partner does not have tobe an FCA employee.The earliest that they can start APL is 20 weeks after the day your child was born and it mustend no later than 12 months after the date of birth. A minimum of 2 weeks and a maximum of26 weeks APL can be taken, depending on the amount of leave you decide to take. YouFCA Employee Handbook 2013 74

spouse/partner’s employer may ask you to provide additional information and sign adeclaration form to confirm their eligibility to take APL/APP.For further information on the FCA’s Paternity arrangement please see the Paternity LeavePolicy.Contact during maternity leaveShortly before you go on maternity leave, we will discuss the arrangements for keeping intouch during that time. We reserve the right to maintain reasonable contact with you. Thismay be to discuss your plans to return to work, KIT days (see below) or to update you on workdevelopments during your absence, etc.Return-to-work bonusIf you return to work with the FCA after a period of at least 12 weeks’ maternity leave(whether OML or AML), you will be entitled to receive a return-to-work bonus. The bonus willbe either six weeks’ pensionable salary (at the rate payable when your maternity leavestarted) or £3,300, whichever is the greater. The return-to-work bonus will be subject todeductions for tax and NIC.You may elect to receive your return-to-work bonus at any time up to three complete calendarmonths after your return to work. You can choose how and when you would like to receiveyour return-to-work bonus as follows:To be paid between weeks 13 to 24 of your maternity leave. This is in addition to SMPentitlement (weeks 1-39);To be paid between weeks 40 to 51 of your maternity leave. SMP is not paid during thisperiod;A lump sum at any point during your maternity leave; orIn the fourth month’s salary payment after your return to work.Prior to commencing your maternity leave, you will receive a maternity bonus form from HRTransactions, allowing you to select one of the above options for receiving your payment.If you stop working for the FCA within three months of returning to work from maternity leave,having received your return-to-work bonus, you will be required to repay the full amount. Ifyou have not received it at this time, any such payment will be forfeited.If you take career leave immediately following a period of maternity leave, and you decide toresign at the end of that period, you must pay back the return-to-work bonus paid to you infull.Shared maternity/paternity leave between FCA employees and the return-to-workbonusIf you and your partner are both employed by the FCA and share maternity/paternity leave,the return-to-work bonus will be paid to only one of you. Between you, you should nominatewho will receive this bonus by noting this on this relevant form.‘Keeping in touch’ days (KIT)To support occasional training, or help keep in touch without losing SMP, the Government hasintroduced ‘Keeping in Touch’ (KIT) days during maternity leave. These KIT days allow the FCAand you to make reasonable contact occasionally during a maternity period. In addition, if youFCA Employee Handbook 2013 75

are on maternity leave you can still work for us for ten days by mutual agreement withoutlosing SMP. An example of a KIT day could be to attend a divisional away-day, training orrefresher courses. It should not be used to introduce friends and colleagues to new familymembers. Important points to note include the following:The KIT days cannot be taken during the 2 weeks compulsory maternity leave;You can come into the office for one hour or a whole day. This will be counted as a full dayfor these purposes;The decision to take a KIT day and when that KIT day will be taken, must be made byagreement between you and the FCA;The KIT day will not bring your maternity leave to an end;We have no right to demand that you undertake any such KIT work and you cannot insistthat you undertake such work; andYou will be paid at your normal daily rate for each KIT day worked, without losing SMP.For example, if you are absent from work on maternity leave from Monday 21 May for 39weeks and return to work for two days a month in September, October, November, Decemberand finally January you would not lose any SMP.Returning from maternity leaveIf you return to work at the end of your full maternity leave period you do notneed to notify us in advance of the date of your return. Unless you notify us otherwise (seebelow), the date on which you return to work will be:the first working day after the end of your 52 weeks OML and AML; orif you wish to return to work before the end of your maternity leave period, you must giveyour line manager at least 8 weeks’ advance written notice. If you fail to do so, yourreturn to work may be postponed to a date that will ensure that the notice period isserved.The job that you will be entitled to return to will be as follows:Returning after OML – you will generally be entitled to return to the same job on the sameterms and conditions as if you had not been absent.Returning after AML – where possible, you will be entitled to return to thesame job on the same terms and conditions. If this is not reasonably practicable, in whichcase you will be entitled to be offered suitable and appropriate alternative work oncomparable terms.Breastfeeding mothersThe FCA provides facilities to new mothers who are breastfeeding and need to express milkduring the working day. You will be given access to the first aid room. Please contact one ofthe first aiders for your floor. Alternatively you can use one of the bedrooms in 25TNC. Pleasespeak to Corporate Security to gain access to these rooms.Postponement of return to workIf you are too ill to return to work at the end of your maternity leave period, the sicknessabsence policy and procedure will apply.FCA Employee Handbook 2013 76

Flexible workingIf you wish to vary your working pattern on return from maternity leave, you have the right torequest a flexible working pattern, as explained in the Flexible Working Policy. You might wishto mention to your line manager before you go on maternity leave that you are interested inapplying to work flexibly on your return. Bear in mind that you may need to attend meetingsat the office so that your request can be properly considered. If you want the changes to takeeffect on your return from maternity leave, you should make your application in good timebefore your return, using the appropriate application form.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Maternity Policy as at January 2012.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The policy is not contractual and is subject to change at the discretion of the FCA – we willpublish any changes on the intranet.If you have any questions on how the policy applies, please contact the HR Helpline onextension 67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 77

Paternity Leave PolicyStatement of intent and purposeThe FCA’s Paternity Leave Policy incorporates statutory requirements on paternity rights and,in a number of areas, offers more generous provisions than required by law so we can supportour employees who take paternity leave.PrinciplesWhat you can expect from the FCAWhen returning from Ordinary Paternity Leave (OPL), you will generally be entitled toreturn to the same job on the same terms and conditions as if you had not been absent.When returning from a period of Additional Paternity Leave (APL), we will endeavour toreturn you to the same job unless this is not reasonably practicable to do so, in which caseyou will, if practicable, be offered suitable and appropriate alternative work on comparableterms and conditions.We will provide you with enhanced pay during Ordinary Paternity Leave and a return-toworkbonus where applicable and you are eligible (see below).What the FCA expects from youYou must:Raise a request for Ordinary Paternity Leave request via Employee Self-service onChrysalis;Comply with all the notification and eligibility requirements detailed in this policy (N.B. asthese are statutory);Make a flexible working request in good time if you want to vary your working pattern onyour return to work;Use up your core and bank holiday entitlement before you start Additional Paternity Leaveor at the end of your leave period (where possible in the same holiday year) beforereturning to work;Give the relevant notice as stated in your contract if you decide not to returnto work;Repay in full any enhanced paternity payments, e.g. return-to-work bonus, if you decidenot to return to work after your paternity leave; if you leave within three months of yourreturn to work; or after a period of career leave that immediately follows your paternityleave.See the FCA’s Adoption Policy for information on paternity leave for adopted children.The policyLength of paternity leaveOrdinary Paternity Leave (OPL)Subject to the eligibility requirements below, you will be entitled to take one week or twoconsecutive weeks Ordinary Paternity Leave (not odd days or two separate weeks). You canchoose to start your leave on any day of the week from:the date of the child’s birth;FCA Employee Handbook 2013 78

a chosen number of days or weeks after the date of the child’s birth; ora chosen date which falls after the first day of the expected weekof childbirth.Leave must be completed:within 56 days of the actual date of birth of the child; orif the child is born early, within the period from the actual date of birth up to56 days after the expected week of birth.You will be entitled to only one period of leave irrespective of whether more than one child isborn as the result of the same pregnancy.You will need to complete the Paternity Leave request via Employee Self-service on Chrysalis,as evidence that you meet these eligibility criteria.Eligibility for OPLYou need to satisfy the following conditions to qualify for OPL. You must:be our employee;have been continuously employed by the FCA for at least 26 weeks by the end of the 15thweek before the expected week of childbirth;have or expect to have responsibility for the child’s upbringing;be the biological father of the child, the mother’s husband, partner or civil partner; andbe making the request for leave to help care for the child or to support the child’s mother.Notification requirements before starting OPLAt least 15 weeks before the week your baby is due, you must raise a Paternity Leaverequest via Employee Self-service on Chrysalis, giving notice of the following:the week the baby is due;whether you wish to take one or two weeks leave; andwhen you wish your leave to start (see above – Length of paternity leave).You should inform the HR Helpline in writing when your baby was born as soon as isreasonably practicable after the birth.If you intend to take parental leave immediately after or before your paternity leave, wesuggest that you give notice of this at the same time that you give notice for paternity leave,but at least 21 days before you intend your parental leave to start.We will respond in writing to your notification of OPL within 28 days, to confirm start and enddates of OPL.Change in OPL date and early/late birthYou will be able to change your mind about the date you want your OPL to start provided yougive your line manager and the HR Helpline at least 28 days’ written notice of the new date or,if this is not possible, as soon as is reasonably practicable.FCA Employee Handbook 2013 79

You cannot take paternity leave or be paid SPP before the birth of your baby. If your baby isnot born by the date you specified, you can change the date or choose to take leave from theactual date of birth or a specified number of days after the birth, provided you give at least 28days’ written notice of the new date or, if this is not possible, as soon as reasonablypracticable. You must confirm in writing when you change your mind about your leave dates.If your baby is born before it is due you may not have given notice of your intention to claimpaternity leave. In this instance you should confirm in writing as soon as is reasonablypracticable.Additional Paternity Leave (APL)You may be entitled to take up to 26 weeks’ APL within the first year of your child’s birthprovided that you satisfy all of the qualifying criteria for OPL as outlined above, and themother has returned to work before using his/her full entitlement to Additional MaternityLeave. Your partner does not have to be an FCA employee. There are a number of additionalconditions to APL:the earliest that APL can start is 20 weeks after the date the child is born and it must endno later than 12 months after that date;it must be taken in a single block in multiples of complete weeks;the minimum period of APL is 2 weeks and the maximum is 26 weeks; anda gap is permitted between the completion of the mother’s maternity leave and your APL,providing the above conditions are met.Eligibility for APLYou need to satisfy the following conditions to qualify for APL:be our employee;have been continuously employed by the FCA for at least 26 weeks by the end of the 15thweek before the expected week of childbirth;remain in continuous employment with the FCA until the week before the first week ofAPL;be the biological father of the child, the mother’s husband, partner/civil partner;be taking leave to care for the child; andthe mother of the child must be entitled to one or more of maternity leave, StatutoryMaternity Pay or maternity allowance.Notification requirements before starting APLAt least 8 weeks’ before the week your baby is due, you must complete the AdditionalPaternity Leave (Word) form (contact the HR Helpline for a copy) which:gives notice of the date you wish to start and end APL and Additional Statutory PaternityPay (ASPP);gives notice of the date your child is expected to be born;confirms the date the actual date of birth;FCA Employee Handbook 2013 80

confirms the purpose of the APL/ASPP is to care for the child;confirms you satisfy the eligibility conditions for APL/ASPP.The form also includes a section for the mother to complete to confirm:his/her names, address, and national insurance number;the date he/she intends to return to work;that he/she is entitled to SMP/SAP/maternity allowance;start date of his/her maternity/adoption leave;confirmation that you satisfy the relationship eligibility criteria;that he/she consents to the FCA processing the information in the form;that you are the only applicant for APL/ASPP for that child; anda signature from the HR department of the mother’s employers.If you intend to take parental leave immediately after or before your paternity leave, wesuggest that you give notice of this at the same time that you give notice for paternity leave,but at least 21 days before you intend your parental leave to start.We will respond in writing to your notification of APL within 28 days, to confirm start and enddates of APL and ASPP.Change in APL dateYou will be able to change your mind about the date you want your APL to start provided yougive your line manager and the HR Helpline at least 6 weeks’ written notice of the new date or,if this is not possible, as soon as is reasonably practicable.Statutory Paternity Pay (SPP) and FCA enhanced paymentsSPPDuring your paternity leave, you may be entitled to receive Statutory Paternity Pay (SPP). Toqualify you must meet the eligibility requirements and have average weekly earnings at orabove the lower earnings limit for National Insurance. – see the HMRC website for current SPPrates.FCA enhanced payWe will enhance Statutory Paternity Pay (SPP) to 100% of your salary for the 2 weeks ofOrdinary Paternity Leave, whether you take 1 or 2 weeks. Please see below for details of whatyou need to do to claim paternity pay.Additional Statutory Paternity Pay (ASPP)If the mother/partner/civil partner has all or at least 2 weeks of her 39 weeks entitlement toStatutory Maternity Pay when she returns to work, this can be transferred to you as AdditionalStatutory Paternity Pay.Pay, benefits and your contract of employmentIf you are on APL, and providing you have given the required notice as detailed above, you willbe entitled to the following:FCA Employee Handbook 2013 81

All the contractual benefits which you were receiving immediately before you began yourAPL will continue except remuneration (i.e. wages or salary and any contractualallowances) (see sections on ASPP above);Holiday entitlement will continue to accrue (see the holiday FAQs on My FCA Hub). Youshould use up your core holiday and bank holiday entitlement before you start APL or atthe end of your leave period (where possible in the same holiday year) before returning towork, i.e. tack your holiday onto the end of APL. If you cannot take it at that time you canchoose from the following options:1. Any outstanding holiday for the year which you cannot take before APL starts must betaken within 12 months of your return to work, or you will lose it; or2. Request via the HR Helpline that any accrued and untaken holiday in excess of thestatutory holiday entitlement (i.e. for full-time employees this is 20 of the core daysplus the normal 8 bank holidays; pro-rated for part-time employees) be bought backby the FCA. This sum will be paid at the end of your APL period or any time up to theend of the holiday year in which your APL ends (see the Holiday Policy - “HolidayPayments” section for details of how this will be calculated). Please note, you mustmake this request before the end of the holiday year in which you return from APL;We will continue to pay contributions to the FSA Pension Plan on your behalf for as long asyou are being paid ASPP; andYou will be entitled to be considered for Pay Review during APL. Any Annual IndividualIncentive that you are awarded will be pro-rated by the number of working days you areabsent due to taking Additional (unpaid) Paternity Leave.In addition, if you return to work after a period of APL and work continuously for the FCA for12 calendar months (other than on authorised holiday or sickness absence), the FCA willensure that:your pensionable service for the purposes of the FSA Pension Plan is treated as continuousservice (i.e. that it includes the full period of APL; anda special employer contribution is made to the FSA Pension Plan on your behalf. This willcover the full period of APL at the contribution rate when your APL began.If you are unable to return to work following APL due to sickness, the above pension provisionswill not be made until you have returned to work for a continuous period of 12 months.For both statutory and contractual purposes, continuity of employment is not broken by OPL orAPL. The period of paternity leave counts as a period of continuous employment for statutoryand contractual purposes, except for membership of the FSA Pension Plan (subject to theprovisions in the “Return-to-work bonus” section below).Your employment with the FCA will continue during paternity leave. During this period you willnot, of course, be required to work nor will the FCA be required to provide you with work,unless you are taking one of your “keeping-in-touch days” (see section below for furtherdetails). If you decide not to return to work after paternity leave, you must give the relevantnotice as stated in your Contract of Employment. If you fail to give notice and fail to return towork at the end of your relevant period of leave (without informing the FCA of an authorisedreason for absence, such as sickness), you will be treated as having resigned from the FCA.Your employment and contract will come to an end as a result of your resignation.FCA Employee Handbook 2013 82

Failure to return to work means you will not qualify for the return to work arrangementsdescribed below and you will be required to repay any enhanced paternity payments made toyou during your paternity leave period (i.e. what you have been paid, minus SPP).Contact during paternity leaveShortly before you go on paternity leave, we will discuss the arrangements for keeping intouch during that time. We reserve the right to maintain reasonable contact with you. Thismay be to discuss your plans to return to work, KIT days, to update you on workdevelopments during your absence, etc.Return-to-work bonusIf you return to work with the FCA after a period of at least 12 weeks’ of Additional PaternityLeave, you will be entitled to receive a return-to-work bonus. The bonus will be either sixweeks’ pensionable salary (at the rate payable when your APL started) or £3,300, whichever isthe greater. The return-to-work bonus will be subject to deductions for tax and NIC.You may elect to receive your return-to-work bonus at any time up to three complete calendarmonths after your return to work. You can choose how and when you would like to receiveyour return-to-work bonus as follows:To be paid between weeks 13 to 24 of your APL;A lump sum at any point from week 13 of your APL; orIn the fourth month’s salary payment after your return to work.Prior to commencing your APL, you will receive a return-to-work bonus form from HRTransactions, allowing you to select one of the above options for receiving your payment.If you stop working for the FCA within three months of returning to work from paternity leave,having received your return-to-work bonus, you will be required to repay the full amount. Ifyou have not received it at this time, such payment will be forfeited. If you take career leaveimmediately following a period of APL, and you decide to resign at the end of that period, youmust pay back the return-to-work bonus in full that you received.If you stop working for the FCA within 3 months of returning to work, having received yourreturn-to-work bonus, you will be required to repay the full amount. If you take career orparental leave immediately following a period of APL, and you decide to resign at the end ofthat period, you must pay back the return-to-work bonus paid to you in full.Shared maternity/paternity leave between FCA employees and the return-to-workbonusIf you and your partner are both employed by the FCA and share maternity/paternity leave,the return-to-work bonus will be paid to only one of you. Between you, you should nominatewho will receive this bonus by noting this on this relevant form.‘Keeping in touch’ days (KIT)To support occasional training, or help keep in touch without losing ASPP, the Government hasintroduced ‘Keeping in Touch’ (KIT) days during APL. These KIT days allow the FCA and you tomake reasonable contact during the period. In addition, if you are on APL you can still work forus for 10 days by mutual agreement without losing ASPP. An example of a KIT day could be toattend a divisional away-day, training or refresher courses. It should not be used to introducefriends and colleagues to new family members. Important points to note include the following:FCA Employee Handbook 2013 83

You can come into the office for one hour or a whole day. This will be counted as a full dayfor these purposes;The decision to take a KIT day and when that KIT day will be taken must be made byagreement between you and the FCA;The KIT day will not bring your APL to an end;We have no right to demand that you undertake any such KIT work and you cannot insistthat you undertake such work; andYou will be paid at your normal daily rate for each KIT day worked, without losing ASPP.Returning to workIf you return to work at the end of your full APL period you do not need to notify us in advanceof the date of your return. Unless you notify us otherwise (see below), the date on which youreturn to work will be:the first working day after the end of your OPL and APL; orif you wish to return to work before the end of your APL, you must give your line managerat least 6 weeks’ advance written notice. If you fail to do so, your return to work may bepostponed to a date that will ensure that the notice period is served.The job that you will generally be entitled to return to will be as follows:Returning after OPL – you will be entitled to return to the same job on the same termsand conditions as if you had not been absent.Returning after APL – where possible, you will be entitled to return to the same job onsame terms and conditions. If this is not reasonably practicable, in which case you will beentitled to be offered suitable and appropriate alternative work on comparable terms.Postponement of return to workIf you are too ill to return to work at the end of your paternity leave period, the SicknessAbsence Policy and procedure will apply.Flexible workingIf you wish to vary your working pattern on return from paternity leave, you have the right torequest a flexible working pattern, as explained in the Flexible Working Policy. You might wishto mention to your line manager before you go on paternity leave that you are interested inapplying to work flexibly on your return. Bear in mind that you may need to attend meetingsat the office so that your request can be properly considered. If you want the changes to takeeffect on your return from paternity leave, you should make your application in good timebefore your return, using the appropriate application form.Who is covered by this policy?This policy covers all employees.Ownership and, updates and query managementThis is the FCA’s Paternity Policy as at January 2012.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.FCA Employee Handbook 2013 84

It is not contractual and is subject to change at the discretion of the FCA – any changes will bepublished on the intranet. Any questions on the application of the policy should be directed tothe HR Helpline on extension 67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 85

Dependant’s Leave PolicyThe FCA understands that once in a while you may need to take time off to care fordependants. So we will allow you a reasonable amount of time off work to deal with certainunexpected or sudden emergencies and to make any necessary longer term arrangements. Allemployees (male and female), including those on short-term contracts, are entitled to this.PrinciplesWhat you can expect from the FCAYou are not entitled to be paid for time off for dependants (please refer to below sectionon payment), but your manager will consider your request for reasonable time off.What the FCA expects from youAs soon as practical, tell your line manager the reason for your absence and how long youexpect to be away from work.Keep your manager informed of any changes that may affect your dependant’s leavearrangements.Raise a Dependant’s Leave Absence record via Employee Self-service on Chrysalis.The policyYou can take time off:if a dependant falls ill, or has been injured or assaulted;when a dependant is having a baby;to make longer term care arrangements for a dependant who is ill or injured;to deal with a death of a dependant;to deal with an unexpected disruption or breakdown of care arrangements for adependant; orto deal with an unexpected incident involving your child during school hours.The illness or injury need not be serious or life-threatening, and includes both mental andphysical illness.Where a dependant needs to be cared for because of an illness or injury, you can take time offwork to arrange alternative longer term care arrangements.On a bereavement of a dependant, you can take time off to make funeral arrangements, aswell as to attend a funeral. If the funeral is overseas, then your line manager must agree alength of absence which is reasonable in these circumstances.There may be times when both parents want, or need to take time off work. We would want toadopt a common-sense approach depending on the circumstances of the situation. If you needtime off for emergencies that are not covered by this policy, you must agree it with your linemanager.Definition of a dependantA dependant is your husband, wife, partner, civil partner, child or parent. It also includessomeone who lives in the same household as you. It does not includeFCA Employee Handbook 2013 86

tenants or boarders living in the family home, or someone who lives in the household as anemployee.In cases of illness, injury or where care arrangements break down, a dependant may also besomeone who reasonably relies on you for assistance. This may be where you are the primarycarer or are the only person who can help in an emergency.Amount of time offThe amount of time off will vary with the differing circumstances of an emergency. For mostcases, one or two days should be enough to deal with the problem. If you know in advancethat you are going to need time off, you should ask for annual leave in the usual way. Or, ifthe reason you need leave relates to your child, you may be entitled to take Parental Leave.NoticeAs soon as practical, you need to tell your line manager the reason for your absence and howlong you expect to be away from work. It is not necessary to give the notice in writing. Theremay be exceptional circumstances where you return to work before it was possible to contactyour line manager, but you should still tell them why you were absent when you return.Payment during time offYou are not entitled to be paid for time off for dependants. However, the FCA may exercise itsdiscretion and grant paid time off. Where applicable, your line manager will discuss the matterwith the HR Helpline. Payment will depend on individual circumstances and/or hardship.Grievance and disciplineIf you think that you have been unreasonably refused time off, or treated detrimentally fortaking it, please follow the Grievance Procedure.If the FCA thinks that an employee is abusing the right to time off it will be dealt with in linewith the Disciplinary Procedure.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Dependant’s Leave Policy as at April 2009.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The policy is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.If you have any questions on how the policy applies contact * HR Helpline or extension 67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 87

Parental Leave PolicyThe FCA’s Parental Leave Policy incorporates statutory requirements on parental leave rightsand offers more generous provisions than required by law, so we can support our employeeswho take parental leave.From 8 March 2013, the amount of parental leave increased from 13 weeks to 18 weeks for allparents, not just those with a disabled child (for the purpose of parental leave, a child with adisability is one who receives disability living allowance).PrinciplesWhat you can expect from the FCAWhile the law states that you can take up to 18 weeks from 8 March 2013 unpaid leaveper child and a maximum of 4 weeks parental leave per year, we will normally allow youto take 18 weeks in one calendar year.The FCA can postpone the leave for up to six months where the business would beparticularly disrupted if the leave were taken at the time requested.What the FCA expects from youYou must give your line manager 21 days’ notice, by raising an Unpaid Parental Leaverequest on Employee Self-service on Chrysalis, of your intention to take parental leave.You must be eligible to take parental leave (see eligibility criteria below).The policyParental leave is the right to take time off work to look after a child or make arrangements foryour child’s welfare. This leave is unpaid.EligibilityYou are eligible to take parental leave if you have a child under the age of five, or the child isdisabled and under 18 (for the purposes of parental leave, a child with a disability is one whoreceives disability living allowance), or you have adopted a child within the last five years(until the fifth anniversary of the adoption or until the child’s 18th birthday, whichever occurssooner) and you have completed one year’s qualifying service with the FCA by the time youwant to take the leave. It can be taken by both mothers and fathers.Length of leaveA total of 18 weeks from 8 March 2013 may be taken for each child or 18 weeks for each child.If you work part-time, your entitlement will be pro-rated.You will be able to take parental leave in short or long blocks depending on what has beenagreed with your line management.Parental leave is for each child, so if twins are born both parents will get 13 weeks leave foreach child.Taking parental leaveYou can choose to take parental leave any time:up until the child’s fifth birthday;FCA Employee Handbook 2013 88

for five years after the child is first placed with the family for adoption (or until the child’s18th birthday if that comes sooner); orin the case of a child with a disability, up until the child’s 18th birthday.Returning from parental leaveIf you take up to 4 weeks’ parental leave, you have the right as far as possible to return toyour previous job. If you take more than four weeks, or where parental leave follows maternityleave, you are entitled to return to the same job, or, if that is not reasonably practicable,another suitable and appropriate job with comparable salary, conditions and status.Pay and benefitsParental leave is unpaid so you will receive no salary or ‘flex’ account during the period of yourleave. If the period of your leave is one month or less, your benefits will continue. If you takemore than one month’s leave you will have no entitlement to either core or flexible benefits forthe period of leave after the first month, with the following exceptions:core life assurance (2x salary);statutory holiday (28 days including bank holidays for full-time employees) continues toaccrue;redundancy compensation; anddeath in service benefits associated with being a member of the FSA Pension Plan i.e.dependants’ pension (if applicable).Procedures for taking parental leaveLeave must be taken in blocks or multiples of one week, except in the case of children withdisabilities, where leave can be taken in blocks or multiples of one day. In all other cases, partweeks taken will normally be counted as full weeks.You must give 21 days’ notice, Unpaid Parental Leave request on Employee Self-service onChrysalis, to your line manager.The FCA can postpone the leave (see below).Leave cannot be postponed when you give notice to take it immediately after the time thechild is born or is placed with the family for adoption.The FCA may ask you to confirm that you are the parent or the person who is legallyresponsible for the child. Any such request will be reasonable and we will not check onyour entitlement on every occasion on which leave is asked for.Postponement of parental leaveIf your line manager considers that your absence would unduly disrupt the business, or inother appropriate circumstances then the FCA can postpone the leave for up to six months.Your line manager will discuss the matter with you and confirm the postponementarrangements in writing no later than seven days after your notice to take leave. This will statethe reason for the postponement and set out the new dates of parental leave. The length ofthe leave will be equivalent to your original request.When you apply to take parental leave immediately after the birth or adoption ofa child then the FCA cannot postpone the leave. You need to give 21 days’ notice before thebeginning of the expected week of childbirth (expectant mothers will be able to provide thisFCA Employee Handbook 2013 89

information). In the case of adoption, you will need to give 21 days’ notice of the expectedweek of placement. In rare cases where this is not possible, an adoptive parent should give thenotice as soon as is reasonably practicable.Who is covered by this policy?This policy covers all employees of the FCA.Ownership, updates and query managementThis is the FCA’s Parental Leave Policy as at February 2013. The policy is owned by the HRDivision and has been developed in conjunction with the StaffConsultative Committee.The policy is not contractual and is subject to change at the discretion of the FCA – we willpublish any changes on the intranet.If you have any questions on how the policy applies, contact the HR Helpline on extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 90

6. Health, Safety & SecurityDriving at Work PolicyThe FCA is committed to ensuring the health & safety of its employees whilst at work. Thispolicy sets out the requirements and guidance for those individuals who:Use hire cars on behalf of the FCA;Claim mileage for use of private vehicles for FCA business purposes; orDrive on behalf of the FCA, i.e. chauffeurs.PrinciplesWhat you can expect from the FCAThe FCA will:Ensure adequate risk assessments are carried out on those groups who drive for a significantportion of their role.Ensure all chauffeurs have access to suitable driver training if required.Will provide suitable alternative transport or accommodation if travel or working dayexceeds 12 hours, in the event of unforeseen circumstances. This will be via HillgateTravels 24 hour service, phone.0207 066 9971.What the FCA expects from youAll employees driving on behalf of the FCA must have a current valid full driver’s licencethat enables them to drive in the UK.All drivers need to observe normal rules of the road as set out in theHighway Code.You should not use handheld mobiles or any other handheld communication devices whilstdriving.No employee should ever drive if they are over the legal drink driving limit.The use of illegal drugs is prohibited. If using over the counter medicines and prescriptionmedicines please ensure you check with either your GP or pharmacist about whether it issafe for you to be driving.Employees hiring cars on behalf of the FCA must adhere to the terms and conditions setout by the hire car company (currently Enterprise Rent-a-Car).All private vehicles must be road worthy and have a current MOT if applicable.All private vehicles must have adequate insurance for business use in the name of theemployee driving the vehicle and sign a self-declaration on the expenses form whendriving for business purposes.All drivers of private vehicles must provide any of the above named documentation to theFCA if requested.FCA Employee Handbook 2013 91

Guidance for employees driving for work:All employees should allow a suitable amount of time for the journeydistance proposed.It is recommended employees take adequate rest breaks from driving and ensure this isplanned into the journey route.All employees should stop driving immediately if they are noticing signsof fatigue.The maximum time an employee should drive for is 9 hours in any workingday and should not drive and work in excess of 12 hours in any given day or24-hour period.If a minibus is used, the employee must have additional training in driving a mini bus andprovide adequate documentation.Useful links:Travel and Transport websiteWho is covered by this policy?This policy does not apply to commuting, unless the employee is travelling from their home toa location which is not their usual place of work.This policy covers all individuals for the FCA at all levels and grades, including Directors, Headsof Departments, Managers, Technical Specialists, Senior Advisors, Associates, Administrators,Secretaries, Graduates, homeworkers, part-time and fixed term employees and agency staff(collectively referred to as employees in this policy).Ownership, updates and query managementThis is the FCA’s Driving at Work Policy as at December 2009.The policy is owned by the Health & Safety Adviser and has been developed in conjunctionwith the Staff Consultative Committee and the HR Division.The policy is subject to change at the discretion of the FCA – any changes will be published onthe intranet.Any questions on the application of the policy should be directed to the HR Helpline onextension 67070.Contractual status of this policyThis policy does not form part of your contract of employment, with the exceptionof FCA Chauffeurs who have additional contractual clauses and working practicesin place.FCA Employee Handbook 2013 92

Eye Test PolicyPrinciplesWhat you can expect from the FCAThe Display Screen Equipment (DSE) Regulations 1992 (Amended 2002) relate to the correctuse of DSE. We place the highest priority on observing the measures set out in the regulationsand will do the following:Train users in the use of their workstation.Check that DSE users’ desks, chairs and working environment provide the best workingconditions that are reasonably achievable. Special requirements must be supported by aletter from a doctor or specialist adviser, which we will pass for consideration to ourMedical Adviser. Contribute towards the cost of eye tests and eye care. The FCA will contribute up to £20annually towards the cost of this test carried out by a qualified optometrist. If the testreveals that glasses/contact lenses are needed for VDU work, the FCA will contribute up toa further £60 towards the costs of glasses/contact lenses.What the FCA expects from youTake responsibility for arranging regular/annual eye tests.Obtain the relevant receipt and written evidence.The policyTo claim for an eye test only – you must complete a staff expenses claim form (see “Forms” onMy FCA Hub) and attach the receipt from the optometrist showing the value of the test. We willreimburse up to £20.If you also wish to claim up to £60 towards glasses/contact lenses, your optician must providea written statement to confirm the glasses/contact lenses are required for VDU use. We willnot be able to reimburse where the statement only confirms general use.You should forward the completed expenses form, with receipts and VDU statements, to theAccounts Payable team to make payment. Please note you do not need line manager approvalfor eye care claims.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Eye Test Policy as at April 2009.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee and the Health & Safety Adviser. It is not contractual and is subject tochange at our discretion – any changes will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 93

Health and Safety PolicyDetailed information on health and safety matters is contained in the FCA Health and SafetyManual, which is available for reference from the Health and Safety Adviser.What you can expect from the FCAThe Chairman, Chief Executive and Managing Directors wish to pursue a policy to promotehealth and safety at work and seek the cooperation of all employees for that purpose.We will provide working conditions that comply with the relevant statutory requirementsand officially approved codes of practice that are designed to ensure good standards ofhealth and safety.Line management is responsible for implementing and maintaining this policy throughoutthe organisation, and will ensure that health and safety considerations are given priority inplanning and day-to-day supervision of work.In so far as it is reasonably practicable we will ensure that:the working environment is safe, there is no risk to your health and that adequateprovision is made with regard to the facilities and arrangements for your welfare at work;we will work with the landlord of shared tenancy buildings to ensure they met their duty ofcare to all statutory obligations and requirements;we provide adequate resources to ensure that proper provision can be made for healthand safety;risk assessments of equipment, premises, procedures and processes are carried out andperiodically reviewed;we provide and maintain systems of work that are safe and without risk to health;arrangements for use, handling, storage and transport of articles and substances for useat work are safe and without risks to health;we provide you with such information, instruction, training and supervision as is necessaryto secure your health and safety at work and the safety of others who may be affected byyour actions;the provision and maintenance of all plant, machinery and equipment is safe and withoutrisk to healththe place of work is safe and there is safe access to and exit from the workplace;monitoring activities are undertaken to maintain agreed standards.the health and safety policy will be reviewed at least once a year and willbe amended and updated as necessary – you will be notified in writing ofsuch changes.What the FCA expects from youTake reasonable care for the health and safety of yourself and others whomay be affected by your acts or omissions. Cooperate with us in fulfilling our statutoryduties.FCA Employee Handbook 2013 94

Read and comply with all relevant rules and procedures regarding safe working.Do not interfere with or misuse anything provided in the interest of healthand safety.The policyAccidents at work – accident reportingAll accidents, injuries and cases of ill-health caused by, or affecting, your work must bereported without delay. If you are injured, no matter how slight your injury may appear, youmust always report it to your line manager, ensure that you are seen by a first-aider and thatthe details of your accident or injury are recorded using the first-aid incident form on My FCAHub. All dangerous occurrences and ‘near miss’ incidents should also be reported in the sameway.You must not work if you have taken medication or any other substance that could adverselyaffect your ability to operate equipment or work safely.If you see a situation in which a potential accident could occur, or where an injury could besustained by anyone in the building, you should report it immediately to the Facilities Helpdesk(ext. 69696).You must report any damage to FCA or contractors’ property to the Facilities Helpdesk (ext.69696).You must read and comply with all notices, instructions, hazard and warning signs provided foryour information.First aid provisionA number of employees are qualified to give first aid and they retain first aid boxesat their work stations. A list of first-aiders, together with their locations, is available on My FCAHub.Reporting of Injuries, Diseases & Dangerous Occurrences Regulations 1995(RIDDOR)We have a policy statement on chronic infectious illness which reflects the FCA’s policy ofproviding a safe and healthy workplace for all employees. Further information on the policyand RIDDOR are available from the Health and Safety Adviser.Emergency proceduresFire – generalAs far as is reasonably practicable, we will take steps to minimise the risk of fire. Selectedemployees will be appointed as Fire Marshals. They will be given training in basic fireprevention measures, use of fire equipment and evacuation procedures.Our fire evacuation practices and procedures are in accordance with our legal requirements.You are required to observe the following. Failure to do so could lead to disciplinary action,possibly including dismissal.Corridors, stairways, steps and other escape routes must be kept free from obstructions(such as rubbish bags, deliveries, wrappings, equipment, etc.) that block the escapeand/or obscure alarm equipment, extinguishers or signs indicating fire exits.FCA Employee Handbook 2013 95

Fire doors must never be propped open (with extinguishers or wedges of any kind).Access doors linked to the fire alarm system will fail to secure (open) in the event of a firealarm actuation.Any faults with lighting or other equipment should be reported to the Facilities Helpdeskon: 020 7066 9696. Any concerns you may have about fire hazards should also beaddressed to the Facilities Helpdesk, so that appropriate measures can be taken toeliminate the problem.In the event of fireIn the event of fire, you should do the following.Raise the alarm.Follow the specific building instructions in respect of evacuation and listen to instructionsfrom your Fire Marshal.Attempts to extinguish the fire should only be made if it is safe to do so.Assemble at the designated fire assembly point.Do not run, use lifts or stop to collect personal belongings.Do not re-enter the building until instructed that it is safe to do so.Bomb alertsIt is not possible to be prescriptive about what to do in the event of a bomb warning, but thefollowing general rules should be observed.Do exactly what you are told by the emergency services, either directly or through theFCA Services Management Team or FCA employees.Do whatever is necessary and sensible to reduce the risk of injury, i.e. if there is a knownbomb threat and you have not been told to evacuate the building, retire to the safest areawithin your building. This will normally be a building core area, away from the risk ofbroken/flying glass.If you are in the building out of normal working hours and an incident takes place (eitherdirectly affecting the building or in the close vicinity) the most senior person present musttake responsibility for notifying the FCA management of the situation through the securitydesk.If you are in the vicinity of an incident away from the office and your whereabouts orsafety may be uncertain, please telephone your line management.The safety of staff and visitors is always paramount. Never jeopardise personal safety inthe interest of safeguarding property or information.If the building is seriously damaged as a result of a major incident, which occurs outsidenormal office hours or at a time when you are not present in the building, you should notreturn to the building until you have received instructions from the FCA. If a major incident such as a terrorist incident has affected the building, you shouldcontact the Freephone Incident Information Line on: 0500 078780. It will give you anupdate on the incident and provide advice on any action you may need to take. Thisnumber can be accessed at any time and you will not be charged for the call.FCA Employee Handbook 2013 96

Manual handlingWhen handling loads manually, you must use the methods that are indicated by the FCA toreduce the risk of injury. All staff involved in manual handling will receive appropriate training.Working Time (Amendment) Regulations 2001The Regulations relate to limits on working hours and entitlements to rests. We want to ensurethat we comply with them and will:monitor working hours and keep records of these;provide free health assessments for night workers and keep records of these.We may require you to keep a record of your working time and rests to assist the monitoringprocess. Please see Hours of Work for further information.Secondees, visitors and contractorsWe have a responsibility under the Health and Safety at Work Act (1974) to ensure that peoplewho are not employees of the FCA are not exposed to risks to their health and safety whileworking for the FCA or visiting our premises.Who is covered by this policy?This policy covers all employees. This also applies to consultants, contractors, temporaryworkers and those seconded to the FCA.Ownership, updates and query managementThis is the FCA’s Health and Safety Policy as at April 2010.The policy is owned by the Health & Safety Adviser and has been developed in conjunctionwith the Staff Consultative Committee and the HR Division.The policy is not contractual and is subject to change at our discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.Detailed information on health and safety matters is contained in the Health and SafetyManual, which is available for reference from the Health and Safety Adviser.FCA Employee Handbook 2013 97

Safety when Visiting External Organisations PolicyPrinciplesWhat you can expect from the FCAWe will manage any safety in line with the following principles:We see the safety of employees on visits to external organisations as paramount and willtake all reasonable steps to minimise genuine risks.Work with you to identify risks and mitigate the risk where possible.Provide guidance on how to minimise risk via this policy.What the FCA expects from youFor the vast majority of visits, safety is not an issue, but the purpose of this policy is toprovide a list of sensible precautions that you should take if you are undertaking a visitwhere safety is, or may be, an issue.Work with the FCA to identify where safety may be an issue.The policyIdentifying situations where safety may be an issueThe following questions may be indicators of potential risk situations:Is the area that you are visiting potentially unsafe?Are you visiting the firm to discuss a difficult matter/investigate an issue?Does the firm have any known history or is there any knowledge of ‘unacceptable orintimidating behaviour’ towards colleagues?Does the organisation that you are visiting have unconventional premises?If the answer to any of these questions is ‘yes’, you should consider some or all of theadditional precautions listed below.Precautions to take in advance of the visitThe key to safety is good planning. You need to try and consider all eventualities and ensurethat you have researched your travel plans prior to any site visits.Dressing down when attending visitsWhere you are visiting a potentially unsafe area, or an area not normally associated withbusiness dress, you may choose to dress down if this would make you less conspicuous.However, where there is a possibility that the firm themselves may not relax their dress codeyou may want to confirm prior to the meeting that casual dress is acceptable. It may be betterto carry your laptop in a different style of bag to avoid drawing attention to it.Use of Taxis and Hire CarsThe FCA’s policy on taxis and hire cars is that they should only be used where it is costeffective to do so. However, it is acceptable for this policy to be over-ruled where safety is anissue. Where possible, this should be approved in advance with your line manager.Number of Team Members on VisitsFCA Employee Handbook 2013 98

If you are attending a visit on your own and you have identified that it may be a risk situation,it may be a sensible precaution to take a colleague along with you. You must however, discussthe way forward with your line manager.Personal Safety AwarenessIf the nature of your role means that you are exposed to situations where you may be at risk,a training course given by the Suzy Lamplugh Trust (a national charity for personal safety)may help. Please let your line manager know if you are interested. If there is sufficient interestthen training will be arranged.AlarmsIf you wish to have an alarm then we recommend alarms that have been researched andapproved by the Lone Worker Directory Service on the Suzy Lamplugh Trust website. They canbe loaned from the Security Control Room at 25 TNC. We urge that these be carried on allvisits where safety may be an issue.Mobile PhonesIt is advisable for all employees who are visiting an external organisation to ensure they havea mobile phone which is fully charged. You should also ensure that members of staff at yournormal location have your number, as it is imperative that all staff out on visits are contactableat all times for safety reasons. If you do not have a mobile telephone, or you do not wish touse your personal phone for business purposes, speak to your line manager about borrowingone from the phone pool for specific visits.We believe that any violence or threat of violence used against any of our staff isunacceptable, in whatever form it takes and regardless of the motivation for it (if any). Thisincludes any aggressive behaviour, which leads to stress or intimidation for an employee, orany form of physical violence.Research the area that you are visitingYou should ensure that you research your visit beforehand. Maps of areas can be obtainedfrom either www.multimap.com or www.streetmap.co.uk, www.theaa.co.uk also provide someuseful road maps and directions.Make sure someone knows where you areIf you are visiting an external organisation you should make sure that a colleague or a familymember knows where you are, which organisation you are visiting, who is your contact withinthe organisation and what time you are due to return. If colleagues live alone you may wish toconsider setting up a ‘buddy’ system to ensure that they arrive home safely following a visit.If an incident does occurDealing with a hostile situationIf you think you are in danger you should try to minimise the chance of confrontation. Adviceon how to do this is available from the Suzy Lamplugh Trust but some basic advice is that youshould:Stay calm, speak gently, slowly and clearly and be aware of the tone ofyour voice.Appear calm and confident, keep a relaxed posture and avoid anaggressive stance.Do not be enticed into an argument and listen to the individual.FCA Employee Handbook 2013 99

Keep your distance.If you think you are in danger – leave.Reporting the incidentAny physical assault, no matter how minor should be reported to the Police in the areaconcerned. All situations where behaviour exceeds normally acceptable limits must be reportedto your line manager and this will be reported using the standard accident / incident reportingprocedures. You should report the incident even if you think it seems fairly trivial to you. Notto do so could put others at risk.The information that is collected will be analysed to identify any trends. If potential risks areidentified in particular areas or at particular firms then further action will be taken to ensurethat these risks are minimised.Sources of further adviceRisk of Harm FrameworkHealth and Safety Officerwww.suzylamplugh.orgWho is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Safety When Visiting External Organisations Policy as at April 2009.The policy is owned by the Corporate Protection & Resilience Department and has beendeveloped in conjunction with the FCA’s Staff Consultative Committee.The policy is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 100

Security PolicyThis policy explains the various security arrangements we currently have in place at the FCAand related monitoring. At the end of the policy there is a brief reminder about the monitoringassociated with the Flexitime scheme swipe system.PrinciplesWhat you can expect from the FCAA high priority placed on security, both of the people who work here and our property(including information that we hold).What the FCA expects from youUnderstand your responsibilities and contribution to the security of the FCA and its people.Cooperate with the security team where required to do so.The policyBuilding securitySecurity ID passYou will be issued with a security ID pass containing your photograph. You must wear anddisplay your pass at all times when inside the building and present it to security staff onrequest.Your security pass must not be loaned or given to others (whether FCA staff or not).If you lose your pass you must report the matter immediately to the Security Control Room onextension 63838 (manned 24hrs a day, 365 days a year). Security passes are the property ofthe FCA and must be returned at the end of your employment or engagement.Security controlFCA premises are protected by specialist security guards and a range of electronic measures.The buildings are equipped with an Automatic Access Control System to control access to thebuilding and specific facilities throughout.Your security ID pass enables you to enter and leave FCA premises; a key fob is used forEdinburgh. If you need to enter a secure area in connection with your work, or if you are amember of the fitness centre, you gain access by using your pass. We conduct routine auditsof the access log, both for security reasons and to determine occupancy rates of 25TNC fromtime to time. We may also run a check of the log in other circumstances, including, but notlimited to:an emergency situation where there is a need to check who may be in the building;where we have reasonable belief that there has been, or there is about to be, a breach ofsecurity.where we reasonably believe a criminal offence has been or may be committed;where we reasonably believe a member of staff is in breach of their contract or another ofour rules (for example, in relation to working hours obligations), or is otherwise abusingour trust.FCA Employee Handbook 2013 101

As a result of a routine audit or a spot check, we may decide to investigate further anindividual’s record of card swipes. Such investigation may include cross-references to otherlogs of information, such as the Flexitime swipe log.VisitorsReception must be notified of all visitors in advance. On arrival, all visitors should report toground floor reception. Procedures for notification and booking conference facilities are set outin the services A – Z guide on the Intranet.Visitors will be provided with a visitor’s badge for identification purposes and will be required towear and display their badges at all times. They will not be permitted on office floors unlessaccompanied at all times by a member of staff. The host is immediately responsible forensuring that security and safety are maintained. Visitors must be accompanied by their hoststhroughout their visit.CCTVFCA premises are protected by CCTV cameras. These are stationed at various points, includingaccess and egress points, secure areas of the building and certain storage and/or emergencyareas. The cameras are visible. Their positions have been determined by the need to maintainsecurity of the building, its staff and visitors and property.Footage from the cameras is monitored regularly around the clock to ensure that we arealerted to any suspicious or dangerous activity, including possible breaches of security or thecommission of an offence.Right to searchWe reserve the right to search you and any of your property held on FCA premises at any timeif there are reasonable grounds to believe that:you are guilty of any breach of the FCA’s rules and regulations;the search will result in the finding of evidence of regulatory breaches; orthe search will result in the finding of evidence of criminal activity.Any search will be conducted by a member of security, with your consent, in the presence ofan agreed witness. Where a personal search is necessary, this will be carried out by a personof the same sex as the person being searched. The personal search may involve you beinginvited to empty your pockets, bags, etc. No physical contact will be made. Searches will becarried out courteously, sensitively and discreetly. An individual has the right to be searched ina private room.You may refuse to permit the search and there is no disciplinary sanction for this. However, asthe reasons we ask to search you may amount to misconduct, we may invoke the DisciplinaryProcedure and inferences may be drawn from your refusal to be searched.We may at any time invite the police to search, with or without a warrant, FCA premisesand/or people present on FCA premises who are suspected of criminal or other illegal activity.If you refuse to permit the search to take place, your refusal may be treated as grossmisconduct and action taken in accordance with the Disciplinary Procedure.Photography on FCA our premisesThere are many departments in the FCA who work with sensitive commercial information.Photography within FCA premises is a potential risk to the security of this information.FCA Employee Handbook 2013 102

Where there is commercial photography or filming inside our premises, the photographer willneed authority from the Press Office. Photographers must always be hosted and escorted intothe building and must have a specific brief as to what they can and cannot photograph.Security must be notified in advance of any commercial photography within FCA premises.If you or one of your visitors wish to take photographs inside our premises for personalreasons, this is generally restricted to public areas such as reception. If you wish to takephotographs inside office areas, you must seek permission from the Corporate Protection andResilience Department, who will not generally object, but will make certain you are aware thatyou are restricted from photographing documents, security devices, computers and datarooms.Flexitime – swipe systemOur Flexitime scheme requires participants to swipe in and out on the floor on which theywork, using the Flexitime swipe machines. Swiping results in an automatic log of your identityand the time of swiping. These logs are routinely reviewed both to administer and audit theFlexitime scheme. The logs may also be subject to random checking, including cross-checkingwith the security system time-logs, in circumstances such as (but not limited to):auditing overtime claims by cross-checking records to ensure there are no claims underboth the Flexitime and overtime rules for the same time period;where we reasonably believe a member of staff is in breach of their contract or another ofour rules (for example, in relation to working hours obligations), or is otherwise abusingour trust;where we reasonably believe a criminal offence has been or may be committed;where we have a reasonable belief that there has been, or there is about to be, a breachof security.Failure to comply with the rules in this policy may lead to disciplinary action being takenagainst you, including dismissal.Please note that this policy does not form part of your Contract of Employment. It will bereviewed, updated and amended from time to time and it is important that you familiariseyourself with any changes.Contractual information (start)Document securityAt the close of business each day, all papers and laptops should be locked away. During theworking day, papers should not be left unattended in a way that makes it easy forunauthorised persons to read or take copies.Only sufficient copies of papers should be made for the needs of filing and appropriatedistribution. Lost confidential papers should be reported to your line manager immediately. Allconfidential papers must be disposed of in the confidential waste system.Security of computersYou must not attempt to access computer systems or the data held on them unless you havebeen given the necessary authority. As a general rule, you must not give your password toanyone else unless you believe someone has a legitimate reason to need it. If you do give yourpassword to anyone, you must change your password as soon as practical afterwards, by usingthe change password option, or by contacting the IS Helpdesk.FCA Employee Handbook 2013 103

Misuse of the computer system(s) and the data held on them, which causes or could causeembarrassment, loss or inconvenience to the FCA, its regulated firms or any other organisationabout which we hold or are able to access information, will be regarded as a disciplinaryoffence, which could result in dismissal.Please refer to the Disciplinary Procedure for further information.Security over the telephone/fax machineYou are reminded that there is no guarantee of security over the telephone network. Alltelephone conversations should be conducted with this in mind.Caution must be exercised when transmitting confidential and sensitive data by fax to ensurethat confidentiality is maintained by all parties.Security vettingFCA employees undergo a pre-employment check, which incorporates all elements of theGovernment Baseline Personnel Security Standard checks. This means that FCA staff can haveaccess to all grades of FCA information and certain grades of Government-owned ProtectivelyMarked information without further screening (subject, in each case, to having a business needto know the information).Some posts, whilst not requiring employees to have access to Protectively Marked information,need post-holders to have constant access to sensitive FCA information. Post-holders shouldtherefore be screened at regular intervals to validate that they continue to meet the Fit andProper Test for Approved Persons. The FCA has set its risk appetite at 5 years for re-screeningdesignated post-holders, which is the elapsed period since initial screening or last re-screeningif still in a designated post. If the individual leaves a designated post, the requirement for rescreeninglapses, but a person will be re-screened if they subsequently move to anotherdesignated post and more than 5 years has elapsed since last screening.For constant and regular access to the higher Protectively Marked material, the Cabinet Officepolicy requires individuals to be security vetted in line with National Security Vetting (NSV)standards. Additionally, for some roles, NSV clearance may be specified to recognise the factthat the appointment gives the post-holder opportunities to damage the national interest orhas a sufficient impact on reputation to require a higher degree of assurance than the Fit andProper Test for Approved Persons.The FCA’s policy is to undertake national security vetting on a role need basis. If you arerecruited into a job that requires you to be security cleared, your appointment will beconditional upon the appropriate level of clearance being granted and maintained. This applieswhether the recruitment is internal or external.If the nature of the role in which you are currently working changes, or if the securityrequirements placed on the role change, your manager will discuss the implications with youafter consultation with a member of HR Frontline or your Senior HR Business Partner.Personal and FCA propertyYou are responsible for ensuring that any of the FCA’s property in your possession is properlysafeguarded and kept secure at all times. Any loss should be immediately reported to theSecurity Control Room.We do not accept responsibility for loss of, or damage to, private property (including cash).You should ensure that personal property, especially handbags, are not left unattended andare locked away. Any missing article should be reported immediately to the Security ControlRoom on ext. 63838.FCA Employee Handbook 2013 104

On leaving the FCA’s employment, you must ensure that you return all equipment and otheritems belonging to the FCA.Contractual information (end)Please report any photography inside our premises that you are suspicious of or that youbelieve has not been approved.Who is covered by this policy?This policy covers all permanent and fixed-term employees.Ownership, updates and query managementThis is our security policy as at May 2011.The policy is owned by the Corporate Protection & Resilience Department and has beendeveloped in conjunction with the Staff Consultative Committee.The policy is not contractual and is subject to change at our discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment, unlessotherwise stated.FCA Employee Handbook 2013 105

Travel Health PolicyPrinciplesWhat you can expect from the FCAThe aim of this policy is to minimise risks, as far as is reasonably practicable, to the health ofstaff who undertake business travel, and to minimise the impact of travel-related ill-health.The FCA will ensure that all employees who travel on business are:adequately prepared for their journey;fit to undertake that journey;briefed with journey specific travel health advice and receivenecessary vaccinations.What the FCA expects from youTake the precautions as set out below.The policyFitness to travelPrior to undertaking any short-term overseas business travel, you are encouraged to undergoa health assessment with the Occupational Health Adviser (OHA) to ensure your fitness totravel:The initial assessment will be in the form of a health questionnaire.Should any health issues be disclosed, it may be necessary for you to be assessed furthereither by your GP or a medical advisor appointed by the FCA.Should you be considered unfit to travel, your line manager will be notified in writing bythe OHA. This notification will not disclose the reason you are unfitto travel.Journeys to destinations of high risk (as determined by the TRAVAX database that isaccessible by the OHA) may need to be delayed to ensure you are fully protected byrecommended and/or compulsory vaccines.Pre-travel preparation – role of the OHASpecialist travel health advice is available from the on-site OHA, who can be contacted onextension 63900. The OHA will provide pre-travel advice and details of the necessaryvaccinations.If you undertake business travel, you are encouraged to make an appointment with the OHA(through the HR Helpline) four to six weeks before departure to allow sufficient time to ensureadequate protection.In addition to assessing your fitness to travel, the OHA will provide:advice on the management of any pre-existing health conditions that may be adverselyaffected by international business travel;journey specific and any other necessary travel health education and information using theTRAVAX database;FCA Employee Handbook 2013 106

eferral to a Health Centre for travel vaccinations as appropriate to risk by destination;emergency response traveller’s first-aid kit according to risk by destinationsterile medical equipment pack as required according to risk by destinationadvice on the risks of malaria and its prevention, and malaria tablets for those travellingto malarious areas.Anyone who requests Mefloquine will be required to complete a checklist and be seen by amedical practitioner.At the end of the consultation you will be asked to sign a declaration stating that, to the bestof your knowledge, you have received the appropriate travel health advice, immunisation(s)and/or malaria prevention medication appropriate to the country/countries you are visiting.If you refuse the recommended immunisation, the OHA will inform your line manager and theHealth and Safety Officer, who will consider the health and safety implications. This is toensure that, as an employer, FCA we fulfil our duty of care to you and that, as an employee,you are not in breach of health and safety legislation. This could include a decision that you donot travel on business to the high risk area.Post travel assessmentIf you have concerns about your health following a period of overseas business travel, youshould contact your GP.A post-travel health assessment should be carried out in the following circumstances.If you experience any travel-related medical condition while abroad.If you have a chronic disease or medical condition.If you experience a fever, diarrhoea, vomiting, jaundice, urinary disorders, skin or genitalinfections in the weeks following your return from travel.Following a long stay abroad (i.e. three months or more)If you fall ill following your return to the UK.A medical assessment may include an appointment with the OHA, completion of a post-travelhealth assessment questionnaire, or an appointment with a physician.Staff travelling to low-risk areasIf you are travelling to Western or Central Europe, North America, Australia orNew Zealand, you need only contact the OHA if:you have specific concerns regarding your trip;you intend to hire a car and drive abroad, in which case you should carry afirst-aid kit with you, which is available from the OHA;you fall ill on your return.You should also ensure, through your GP, that your British Vaccination Schedule is up todate.FCA Employee Handbook 2013 107

Who is covered by this policy?The policy applies primarily if you are travelling to ‘high risk’ areas (i.e. areas other thanWestern and Central Europe, North America, Australia and New Zealand).Ownership, updates and query managementThis is the FCA’s Travel Health Policy as at April 2009.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The policy is not contractual and is subject to change at our discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 108

7. Joining the FCARecruitment PolicyWe believe the FCA’s success depends on having the right people in the right jobs within theorganisation.The purpose of the FCA’s Recruitment Policy is to provide a framework to ensure we recruit,retain and develop the best person for each job.PrinciplesWhat you can expect from the FCAWe will manage any recruitment in line with the following key principles.We will treat applicants fairly and, where necessary, we will vary our selection processesto accommodate the needs of disabled applicants.We will recruit people who not only have the right skills and behaviours for the job, butwho also have a strong commitment to the FCA and our aims.We will train our recruiters and use selection processes that are fair, consistent andobjective.We will provide successful applicants with the training, coaching and development theyneed to do their job.We will encourage employees to develop their careers within the FCA; however,promotions will only take place following an open advertising process.We recognise the diverse community in which we operate and encourage applications forjobs from applicants irrespective of race, disability, gender, gender reassignment,pregnancy and maternity, religion or belief, marriage or civil partnership, sexualorientation or age (protected characteristics for the purposes of the Equality Act 2010) (orany other factor that is irrelevant to the job).We will not tolerate any form of discrimination in the workplace.There may be managed moves, as described in this policy, whereby we may not advertisea specific role.What the FCA expects from youWe expect employees to:apply for jobs using the FCA’s recruitment process;declare any performance improvement or disciplinary warnings to therecruiting manager;inform your line manager if you are applying for an internal vacancy.The policyWhere possible, vacancies will be openly advertised using the FCA’s online recruitmentsystem, unless there is a good business reason for not doing so.FCA Employee Handbook 2013 109

Applications will be submitted for jobs using the FCA’s online recruitment system.Shortlisting will take place against the essential and desirable criteria for the job, andinterviews will take place using a range of competency based and technical questions.The assessment process will be tailored to the requirements of the vacancy and willcomprise one or more of a range of exercises, e.g. interview(s), role play,in-tray exercise, presentation, tests, etc.The job will be offered to the best person for that job, taking into account the essentialand desirable criteria for the role.All applicants will be informed of the outcome of their application in a timely mannerApplicants must meet the FCA’s standard for referencing and vetting, including, but notlimited to, the right to work in the UK, satisfactory credit checks, employment references,criminal record checks and, where necessary, HMG Security Clearance (see the SecurityPolicy for further information on checks).Internal movesEmployees are encouraged to develop their careers within the FCA and discuss internal moveswith their line manager, preferably through Talent Management discussions.Before you apply for another job, you must have:informed your line manager;successfully completed your probationary period;have been in your current role for a minimum period of 12 months; andtold the recruiting manager if you have a live performance improvement plan ordisciplinary warning.During the recruitment process:If you are invited to the final stage of the recruitment process, before attending, youmust:provide the recruiting manager with a copy of your last appraisal and;inform the recruiting manager if you have a live performance improvement plan ordisciplinary warningFollowing the recruitment process:If you are successful:you will be expected to remain in your new role for a minimum period of12 months.If you are unsuccessful:you will receive feedback as to why;you are encouraged to discuss the feedback with your current line manager and addressany development points.FCA Employee Handbook 2013 110

Transfers to new jobs will normally take place within four weeks of offer (plus any leave thathas been agreed during this period), unless the line managers of the respective areas agreeotherwise. When agreeing a transfer date, line managers will need to take existing and newpriorities into account.Connect a friend policyYou can receive an incentive payment for introducing candidates for permanent or fixed termcontract positions in excess of 12 months. Please see the Connect a Friend Policy forconditions.Internal secondmentsFrom time to time, short-term opportunities arise, which can be offered up as internalsecondments to employees within the FCA. These short-term opportunities arise for a numberof reasons, e.g. to provide cover for maternity leave, long-term sickness, externalsecondments, or to support a department through a peak in workloads.Internal secondments provide a short-term opportunity for employees to develop further theskills, knowledge and behaviours valued by the organisation.Your current line manager must agree that you can go back to your original job when thesecondment finishes. If it is not possible to return to your original job (e.g. due to arestructure), you will return to a similar job on terms, that will be no less favourable than thejob that you left.Re-employmentFormer employees whose previous employment with the FCA proved satisfactory may be reemployed,subject to the normal recruitment process.Circumstances where jobs might not be advertisedThere will be occasions when jobs are filled without advertising the vacancy. This willgenerally only happen in the following circumstances:Where speed of movement is the primary consideration.Where a managed or ‘directed’ move is a key element in someone’s career developmentor will help the FCA spread new ideas and practices acrossthe organisation.Where the skills and behaviours required for the new job are confined to very fewindividuals within the FCA.Where employees at risk of redundancy need to be redeployed directly into a job.Where divisions reorganise and one or more of the above points apply.Who is covered by this policy?This policy covers all employees who have successfully completed their probationary period.Ownership, updates and query managementThis is the FCA’s Recruitment Policy as at April 2013.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.FCA Employee Handbook 2013 111

The policy is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 112

Probation PolicyThe FCA believe it is important to have a probationary period because it gives the employeethe opportunity to understand what is required of them in the job and an opportunity todemonstrate that they are able to apply the technical and behavioural skills and attendancelevels required.The probationary period also provides an opportunity for the FCA to provide the training andcoaching required in the job, and for the line manager and the employee to discuss progress inthe job. In this way, the employee can ascertain whether this is the right job for them, and theFCA can ascertain whether the employee is right for the job.If there are any problems with performance, behaviour or attendance during the probationaryperiod, the line manager will talk to the employee and identify ways of providing support toaddress any problems.The purpose of this policy is to provide a framework for managing probationary periods in afair and consistent way.PrinciplesWhat you can expect from the FCADuring your probationary period you can expect your line manager to do as follows:Make you aware of the standards required of you.Let you know how your performance will be measured.Provide training and support to help you meet the standards required.Review your progress against the standards required.Meet with you to discuss your progress and agree any additional support that is needed tohelp you meet the standards required.Make you aware of the consequences of not meeting the standards.What the FCA expects of youWe expect you to do as follows:Talk to your line manager if you are unclear about the standards expected of you.Let your line manager know at an early stage if you are struggling to performto the standards required of your job – they will then be able to provide the help youneed.Apply any training, coaching or other support provided to help you in your job – and ask ifyou need additional help.Take personal responsibility for undertaking your job to a satisfactory standard.The policyLine managers will provide the induction required for the role.You will have objectives that explain what is required in the role and how you will bemeasured.FCA Employee Handbook 2013 113

Your line manager will meet with you during your probationary period to discuss progressin the job, where you are meeting or exceeding the requirements of the role and whereyou need further development.Appropriate training, coaching or development will be put in place.Any issues or problems will be managed in accordance with the appropriateFCA policy.You will be told the status of your probationary period e.g. is it completed to oursatisfaction, is an extension required, or are we considering ending your employment.Dealing with problems during the probationary periodAbsence due to sicknessAll sickness should be managed in line with the FCA’s Sickness Absence Policy.If you are absent for a significant part of your probation due to sickness and there’s anunderlying medical condition, which is likely to be considered a disability under the Equality Act2010 or because of pregnancy, line managers can get help from Occupational Health throughthe HR Helpline.UnderperformanceUnderperformance during the probationary period may indicate a mismatch in the skills of thenew employee and the needs of the role. It is important that everyone is clear on thestandards of performance expected of them, but this is particularly important for newemployees. Line managers must regularly monitor the performance of new employees toidentify and address problems quickly.If, during your probationary period, your level of performance does not meet the standardsrequired for the job you are doing, your line manager will talk to you in accordance with therequirements of the Performance Management Procedure.MisconductWe expect employees to comply with reasonable instructions, the terms of their contract ofemployment and the FCA’s conduct, policy, security and compliance standards.Cases of misconduct should be managed in line with the FCA’s Disciplinary Procedure. Linemanagers should speak to the HR Helpline if they need any advice or guidance.What to do at the end of the probationary periodAt the end of the probationary period (which is stated in your contract), the line managerneeds to decide whether:you meet the required standards and your employment is to be confirmed;they need more time to assess you and want to extend the probationary period; oryou have not met the standards set and they want to end your employment.Confirm employmentThe line manager will receive an automated request to confirm whether an employee’semployment should be confirmed. The line manager should complete and return theconfirmation form as per the instructions, following which the employee will receive an emailconfirming the successful completion of their probationary period.FCA Employee Handbook 2013 114

Extend the probationary periodGenerally, the probationary period provides enough time to assess an employee’s performanceand behaviour, and should only be extended in exceptional circumstances. If an improvementin performance or behaviour is still required, or the line manager wants to make sure anyimprovement can be maintained, it may be appropriate to extend the probationary period.Line managers may also want to extend the probationary period, if the employee has had alarge amount of time off sick during this period or their time-keeping or attendance has been aproblem.Timescales for extensions will vary according to the individual case; however, a one monthextension should be generally provide sufficient time for review. It is unlikely that anyprobation would need to be extended by more than three months – line managers shouldcontact the HR Helpline for advice if this is the case.If the probationary period is extended, the line manager must clearly outline what theemployee needs to do to meet the required standard.End employmentEnding an employee’s employment either during or at the end of their probationary period isregarded as a dismissal and the FCA’s Dismissal Procedure must be followed.Who is covered by this Policy?This policy covers all FCA employees who are in their probationary period. This is stated inyour contract:Contractual information (start)Job TitleHead of Department, Manager & Associate:Probationary PeriodSix monthsAdministrator/Secretary:Three monthsJob TitleLength of contract Probationary PeriodHead of Department, Manager &AssociateLess than 1 yearOne month:One year and overThree monthsAdministrator/Secretary: Less than 1 year One monthOne year and overOne monthContractual information (end)Ownership, updates and query managementThis is the FCA’s Probationary Policy as at August 2010.FCA Employee Handbook 2013 115

The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The procedure is not contractual and is subject to change at our discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment. Your contractual probationaryperiod is stated in your contract of employment.FCA Employee Handbook 2013 116

Relocation PolicyThis policy sets out the FCA’s provisions for financial assistance for relocation. At the discretionof the Divisional Director, this assistance may be given to newly appointed employees atAssociate level and above whom, as a direct result of accepting a position with the FCA incursexpenses in relocating their home nearer to the FCA location. This assistance may also begiven to current employees who are moving to/from the Edinburgh and London offices.This policy is for employees who relocate on a permanent basis or a fixed-term of a period thatthe FCA considers sufficiently substantial on a case by case basis (usually 2 years or more).Secondees are not covered by this policy as separate expenses arrangements are in placethrough the Secondment Team.Relocation assistance will be judged on a case-by-case basis by considering the employee’sindividual situation and the business needs of the FCA. The FCA therefore retains discretion toallow or not allow relocation assistance, or to tailor the extent of any relocation assistance tosuit the particular circumstances of each case. However, the FCA will always act fairly and in anon-discriminatory manner.PrinciplesWhat you can expect from the FCAWhen we offer you a role, we will agree any financial assistance that might apply inrespect of your relocation. This will be confirmed in writing.The Divisional Director, in conjunction with the relevant Recruitment contact, will considerthe facts of the case before communicating their decision in respect of any relocationassistance.Reasonable relocation assistance will only be provided to newly appointed employees, oremployees transferring between the FCA’s London and Edinburgh offices, following writtenagreement by the Divisional Director.Payment will be made through the Staff Expenses Process, supported by receipts andauthorised by the appropriate level of manager as set out in the Expenses Policy.Any agreed relocation assistance is a contribution to the cost of relocation only and is notintended to meet fully all costs associated with relocation, although it may do so in somecircumstances.What the FCA expects from youYou will not pay for or commit to any relocation expenses until the FCA’s relocationassistance has been confirmed in writing.You will provide the FCA with original receipts and invoices from all relocation expenses, inline with HM Revenue & Customs (HMRC) guidance (see below).You will only spend the relocation assistance on items authorised by HRMC guidance.The policyEligibilityAt the discretion of the FCA, financial assistance for relocation may be made available toemployees at Associate level and above and will be restricted to roles that are considered to becritical roles and/or requiring key skills at that time.FCA Employee Handbook 2013 117

If you are eligible for relocation assistance you will be advised of this by the recruitingmanager or the Resourcing Team contact when we offer you the role. This will then beconfirmed in writing.To be eligible for relocation assistance, your main residence at the time of offer must not bewithin what the FCA considers to be reasonable travelling distance of your new place of work.Your new permanent residence must be within what the FCA considers to be reasonable dailytravelling distance of the new FCA location. We recommend a maximum journey time of 90minutes each way.Amount availableThe exact amount of any relocation assistance will be determined by the Divisional Director (orManaging Director if there is no Divisional Director), in conjunction with the relevantRecruitment contact from the HR Division, and based upon the specific needs of the case. Themaximum level of relocation assistance provided by the FCA will be £8,000 (see below for taxdetails). It will be paid through the Staff Expenses Process, supported by receipts andauthorised by the appropriate level of manager (see the Expenses Policy).This policy provides for a contribution to the cost of relocation only and is not intended to meetfully all costs associated with relocation, although it may do so in some circumstances.TaxationAll offers of relocation assistance are subject to HM Revenue & Customs regulations. You areresponsible for any statutory income tax and national insurance liability incurred as a result ofreceiving relocation assistance. The first £8,000 is exempt from tax providing that certainconditions are met, including that the new property is your main residence. Relocation costsabove £8,000 (as at 2010) are a taxable benefit. The FCA is not responsible for tax advice onthese matters so you are responsible for seeking advice and following legal guidelines as existfrom time to time.Relocation must be completed before the end of the tax year (5 April) after the one in whichyou take up your new position.The relocation assistance may be spent on, but is not limited to, the following goods orservices, as in line with the HMRC guidance:transporting your belongings to the new residence;domestic goods for the new residence;legal fees associated with the selling of your existing home or the buying of a newproperty; andassociated travel and subsistence costs.See HMRC guidance for full details of the goods and services that are covered under the taxexemption threshold and any conditions.Repayment of relocation assistanceYou will be offered relocation assistance only if you agree (in advance) to the repayment termsin the event that, within 2 years from the date of payment of relocation expenses, youremployment is terminated for reasons of resignation, dismissal for capability or conduct. Thoseoffered relocation assistance will be required to sign an agreement to this effect. Repaymentwill not, however, be required if the reason for your termination of is redundancy.FCA Employee Handbook 2013 118

The amount payable is reduced proportionally and is as follows:Period of service (from the date ofpayment of relocation assistance)Amount to be repaid (as % of totalexpenses)Leaving within 0-6 months 100%Leaving within 7-12 months 75%Leaving within 13-18 months 50%Leaving within 18- 24 months 25%In the event that you do not relocate within the required timescales (see Authorisation below),you will be asked to repay all of the relocation assistance given.AuthorisationIf you request or are offered financial assistance with relocation, you should obtain the priorwritten agreement of your Divisional Director (or Managing Director if there is no DivisionalDirector) before committing to any spend. They will confirm the amount of any relocationassistance that you will receive, following discussions with their contact from the HR Division.All relocation expenses must be claimed within a timeframe as stated in your offer letter or asotherwise set out by the HMRC.Who is covered by this policy?This policy covers all employees excluding secondees.Ownership, updates and query managementThis is the FCA’s Relocation Policy as at September 2010.The policy is owned by HR Division and has been developed in conjunction with the FCA’s StaffConsultative Committee.Relocation assistance is discretionary. It is not a contractual entitlement and the FCA reservesthe right to withdraw it at any time - any changes will be published on the intranet.Any questions on the application of the policy should be directed to the HR Helpline onextension 67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 119

8. Leaving the FCALeaving the FCA PolicyIf you leave the FCA for any reason we will manage your exit in a fair and consistent manner.The purpose of this policy is to outline the FCA’s arrangements for managing employees whoare leaving the organisation and your obligations during this period.PrinciplesWhat you can expect from the FCAWe will process your resignation in an accurate and timely manner.We will pay you salary and benefits up to your leaving date.We will pay your final salary and any other monies owing to (subject to any deductions ifany) you on pay day of the month that you leave – providing we have received yourleaving details before our payroll cut-off for that month.We will pay your final salary and any other monies owing to you on pay dayof the month after you leave if we receive your leaving details after our payroll cut-off inthe month that you leave.We will deduct any monies you owe us from your last salary payment – and where thereare insufficient funds available, we will expect you to send us a cheque for the outstandingsum.We will pursue all lawful means to recover any monies you owe us.Other than where we may terminate your employment summarily with or withoutpayment in lieu of notice we will give you notice to terminate your employment in line withyour contract of employment or statutory requirements – whichever is the greater.We will pay you in lieu of the balance of any notice owed if, for any reason, we are unableto give you the notice required by your contract or the law or if we elect to pay you in lieuof notice.We will provide you with a standard reference providing you have given us writtenpermission to do so.We will ask you to complete an online exit questionnaire. This questionnaire is anonymousand managed by a third party, and will give you an opportunity to say what you likedabout the FCA, why you are leaving, and what you did not like about the FCA.What the FCA expects of youGive us notice of your resignation in line with the timescales provided in your contract ofemployment.Work your agreed notice period and maintain high standards of work and behaviour duringthis time.Provide us with timely and accurate details of holidays and monies owed e.g. sponsoredstudies, return-to-work bonus following maternity/adoption/Additional Paternity Leave,season ticket loan.FCA Employee Handbook 2013 120

Give us written permission to provide references for you (if you want us to do so).Talk to your line manager if you want to leave earlier than the end of your notice periodand establish whether the business can accommodate this.Repay any monies you owe to the FCA in your final salary payment – and whereinsufficient funds are available, to pay any balance owed by cheque.What you can expect of your line managerListen to your reasons for wanting to leave earlier than the timescales required by yourcontract of employment, and to make a decision based on business requirements.Pay reviewYou will not be entitled to be considered for Pay Review or the Annual Individual Incentive Planif you are under notice (given or received) up to 31 March.Summary of the processNotice is given that you will be leaving the FCA. If you resign from the FCA you mustcomplete the Resignation Form (under “Forms” on My FCA Hub)You provide information relating to holidays and monies owed e.g. sponsored studies,return-to-work bonus following maternity/adoption/Additional Paternity Leave, seasonticket loanYou agree earlier leaving date with line manager (where appropriate)Revised leaving date is provided to the HR Helpline (where appropriate)Resignation is processed by HR Transactions and any outstanding payments are madeYou return all FCA property on or before the termination dateReferences provided to future employers on requestThe policyContractual information (start)This section up to “re-employment” contains information that forms part of your contract ofemployment.ResignationIf you want to leave the FCA you are required to complete an online Resignation Form andforward it to your line manager and the HR Helpline. This eform acts as your letter ofresignation, so do not complete it and send it on unless you are certain you want to resign.Notice periods for permanent employeesThe following table shows the notice periods required for employees on permanent contracts.Please note that, where relevant, the notice periods from the FCA noted below will increase inline with any statutory minimum notice entitlement:FCA Employee Handbook 2013 121

Job titleEmployees in theirprobationary periodEmployees who havepassed their probationaryperiodNotice fromthe FCANotice tothe FCANotice fromthe FCANotice tothe FCADirector 3 months 3 months 6 months 6 monthsHead of Department One month One month 3 months 3 monthsManager One month One month 3 months 3 monthsTechnical specialist One month One month 3 months 3 monthsAssociate One month One month 3 months 3 monthsAdministrator/Secretary One week One week 1 month 1 monthNotice periods for employees on fixed-term contractsThe following table shows the notice periods required for employees on fixed-term contracts.Please note that, where relevant, the notice periods from the FCA noted below will increase inline with any statutory minimum notice entitlement:Job title & ContractDurationEmployees in theirprobationary periodEmployees who havepassed their probationaryperiodNotice fromthe FCANotice tothe FCANotice fromthe FCANotice to theFCAAssociate and above - upto one yearAssociate and above -more thanone yearAdministrator/Secretary -up tosix monthsAdministrator/Secretary -over six months and up tofive yearsOne week One week One month One monthOne month One month 3 months 3 monthsOne week One week One week One weekOne week One week One month One monthSummary (i.e. instant) dismissalThe FCA has the right to terminate your employment immediately without an entitlement tonotice or compensation if you breach the terms and conditions of your employment, are guiltyof conduct that brings or may bring the FCA into disrepute and/or in the case of grossmisconduct (see the Disciplinary Procedure).Working your notice periodFCA Employee Handbook 2013 122

You will normally be expected to work your full notice period. However, on occasions, followingnotice either by the FCA or by you, provided we continue to pay you your full contractualsalary and benefits until your employment terminates in accordance with your contract ofemployment, the FCA is entitled during the notice period to:exclude you from the premises of the FCA, and any regulated firm or other third party atwhich you may be working at the relevant time on behalf of the FCA; and/orrequire you to carry out specified duties for the FCA other than your normal duties; and/orrequire you not to communicate in your capacity as an FCA employee withfirms or organisations regulated by the FCA, other third parties or FCA employees orofficers.require you to refrain from attending internal and external meetings, or forums that maypresent a conflict or are commercially sensitive in nature.In addition the FCA is entitled during the notice period to require that you:do not have contact with employees or third parties except as authorised by usdo not to carry out all or part of your dutiesreturn to us all documents, computer disks and other property belonging to usThe FCA may in certain circumstances invoke our discretionary right to make payment in lieuof notice in relation to all or part of your notice period where you have not worked any noticeor have worked some of your notice. Such payments will be at adjusted salary rate and will besubject to Income Tax and National Insurance Contributions.On leaving the FCA, you may not claim employment or connection with the FCA (other than asa former employee) to any third party.We may require you to take any accrued untaken holiday which is above statutory minimumholiday during your notice period.Contractual information (end)RetirementThe FCA does not operate a compulsory retirement age for our employees. If you decide toretire from the FCA, you should follow the resignation process as set out in this policy.Taking pension benefits while continuing to work for the FCAIf you are a member of the FSA Pension Plan, you are eligible to take your pension benefitsfrom age 60 and carry on working for the FCA. We will contact you 6 months before your 60thbirthday to tell you about your options.Money Purchase membersMembers of the Money Purchase section aged over 55 may, subject to FCA approval, accesstheir benefits before reaching normal retirement age. Approval is unlikely to be given whilstyou are in active service but is likely to be granted once you have resigned from the FCA. Thispolicy covers all employees who are members of the FSA Pension Plan.Re-employmentFormer employees whose previous employment with the FCA proved satisfactory may be reemployed,subject to the normal recruitment process.FCA Employee Handbook 2013 123

Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the Leaving the FCA Policy as at October 2011.The policy is owned by the HR Division and has been developed in conjunction with the FCA’sStaff Consultative Committee.This policy is not contractual except where specified to be contractual.The policy is subject to change at the discretion of the FCA – any changes will be published onthe intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment unless otherwise stated.FCA Employee Handbook 2013 124

Employment ReferencesThe FCA will provide employment references when asked and the purpose of this policy is toexplain the FCA’s approach to providing employment references for employees and formeremployees.IMPORTANT NOTE:Only the HR Division is authorised to provide employment references for existing or exemployeesof the FCA.It is a condition of your employment that you do not give employment or character references,whether in the FCA’s name or otherwise, for existing or ex-employees.See the Employee Guidance pages for information on Confirmation of Employment letters forexisting employees (e.g. for visa applications), financial references, etc.PrinciplesWhat you can expect from the FCAWe will provide employment references for existing or ex-employees in accordance withthe following principles:The information we provide will take account of the duty of care we owe to both you andthe recipient of the reference (usually a prospective employer).We will only provide employment references if you have given us written permission to doso.We will agree the wording of any employment references with you if you are dismissed orleave through a compromise agreement.All employment references will be issued by the HR Division – line managers andcolleagues do not have the authority to provide employment references.We will comply with the specific referencing requirements of regulatory bodies wheredifferent rules, guidelines and timescales apply for certain types of job.We will not provide employment references if you left the organisation more than tenyears ago – this is because we no longer hold any records relating to your employment.What the FCA expects of youWe expect you to give the FCA written permission to provide an employment reference ifyou want us to do so.The policyThe FCA’s employment references procedure is summarised below:If we receive a request for an employment reference while you are still in ouremployment, we will ask you for written permission to provide the reference.If you want us to provide employment references once you have left our employment, wewill need your written permission to do so. The resignation form will include a section thatasks if you wish us to provide employment references for you.FCA Employee Handbook 2013 125

All references provided by the HR Division will follow a ‘standard’ format. This means allemployment references will:be in writingprovide factual information such as: dates of employment with the FCA ;latest position held, e.g. associate;latest division worked in.Provide high-level information about levels of performance, honesty, integrity, attendanceand timekeeping.We will not:provide verbal references;provide testimonials or open references (e.g. To Whom It May Concern);refer to any legal action or intended action by an employee or former employeeincluding Employment Tribunal action against the FCA (unless we are required to bylaw).Frequently asked questionsI am a line manager and have received a request to provide a written employment referencefor a current/former employee. Can I provide one?No. HR Transactions own the employment reference process and no other person in the FCAhas permission to provide an employment reference for any current or former employee. Youneed to forward the employment reference request to the HR Helpline and they will make sureit is dealt with appropriately.I am a line manager and a company has phoned me to ask for a verbal employment referencefor a current/former employee. Can I talk to them about the individual?No. The FCA does not provide verbal employment references. Ask the company to forward awritten employment reference request to HR Transactions in the HR Division. HR Transactionsown the employment reference process and no other person in the FCA has permission toprovide an employment reference for any current or former employee.I have been asked to provide an employment reference for a current/former colleague. Can Ido so?No. HR Transactions own the employment reference process and no other person in the FCAhas permission to provide written or verbal references for any current or former employee. Ifthe request is in writing, you need to forward it to the HR Helpline and they will deal with therequest. If somebody has called you for a reference, ask them to forward a writtenemployment reference request to HR Transactions in the HR Division.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Employment References Policy as at October 2009.FCA Employee Handbook 2013 126

The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The procedure is not contractual and is subject to change at our discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 127

Redundancy PolicyThe FCA is committed to ensuring that, if redundancies were to become necessary, they wouldbe kept to a minimum wherever possible. Our priority would be to find alternatives toredundancy.This policy sets out measures that the FCA would take to avoid redundancies. It alsoemphasises the importance of consultation with employees as a means of finding alternativesto redundancy.For occasions when there is no alternative, this policy also sets out compensatory paymentsand other assistance that would normally be available to you (subject to conditions).PrinciplesWhat you can expect from the FCAIn fulfilling the requirements of its business and maintaining operational efficiency, theFCA aims to minimise and, wherever possible, to avoid redundancies.The FCA is an equal opportunities employer and this policy will be operated in accordancewith the FCA’s Equality of Opportunity Policy.Those at risk of redundancy will be informed of a potential redundancy situation and thereasons for it and will be consulted about ways of avoiding redundancies. The FCA will beopen about the selection criteria applied, but will respect your confidentiality by notmaking public individual profiles against these criteria.The FCA is committed to redeployment as a means of minimising redundancies and will, inline with this policy, work with you to try to find appropriate alternative employmentwithin the FCA (see the Redeployment Policy).Where redundancy is confirmed the FCA will normally offer an enhanced compensatorypayment and other assistance in accordance with this policy (subject to you signing acompromise agreement).The FCA is concerned to minimise the degree of disruption and uncertainty both for FCA’sbusiness and for employees potentially at risk of redundancy. Subject to any time limitsimposed by statute or regulation, the FCA reserves the right to complete the processdescribed in this policy within a reasonable time.What the FCA expects from youThis policy covers all employees whose appointment has been confirmed following asuccessful probationary period.The policyMeasures to minimise redundanciesThe FCA will consider taking one or more of the following measures to minimise potentialredundancies:minimising the use of temporary and agency staff;relying upon natural wastage;inviting volunteers for redundancy;restricting external recruitment;FCA Employee Handbook 2013 128

providing retraining or redeployment at the same or another job level;any other means agreed by the parties, which may be appropriate inthe circumstances.The FCA’s operational requirements might mean that it is not always possible to take particularmeasures or to take the measures in any particular order.Selection criteriaIf a potential redundancy situation arises, in deciding who may be at risk of redundancy, theFCA will consider the balance of skills and experience required to meet its current and futureoperational requirements and business needs. The selection criteria will be objective and willnormally (subject to circumstances) take account of the following factors:whether there are volunteers for redundancy;the extent to which the skills and experience of the employees who may be affectedmatch the skill set required meet current and future needs;the past performance of relevant post holders;their length of service;their absence history; andtheir disciplinary record.Consultation: Collective LevelIf a potential redundancy situation arises, which could result in 20 or more employees beingmade redundant within a period of 90 days or less, the FCA is required by law to consult withappropriate representatives and provide relevant information in a timely manner. For thesepurposes, the FCA regards the SCC as appropriate representatives.Consultation will begin as soon as reasonably practicable and no later than the dates requiredby statute which are:Proposed redundancies at oneestablishment within a period of 90days or lessConsultation will commence100 plus At least 90 days before notice oftermination is given (from 6 April 2013, thischanges to 45 days).20 to 99 At least 30 days before notice oftermination is given.To help the consultation process, the FCA will provide information to the SCC. The informationprovided will include:the proposed number and job level of staff who may be affected byredundancy; andthe measures that will be considered in order to minimise redundancies.This consultation will cover ways of:FCA Employee Handbook 2013 129

avoiding the redundancies;reducing the numbers of redundancies; andmitigating the consequences of any redundancies.Consultation: Individual LevelIf you are identified as being “at risk” of redundancy you will be notified individually. No finaldecision will be made until the FCA has consulted individually with all the employees ‘at risk’(which will involve at least one meeting with them). At any meeting you may be accompaniedby a companion.Individual consultation will usually last for a period of 28 days but the period may be reducedat the FCA’s discretion. Consultation is an opportunity for you to make representations aboutyour selection for potential redundancy and to discuss alternatives to redundancy.Where an alternative job is available (see below, Redeployment within FCA), you will usuallyeither be offered the alternative job, or given the chance to apply for it. The alternative jobmay involve a trial period.Where there is no alternative job, and the redundancy situation still exists after consultation,you will receive written confirmation of your redundancy. This will include the date of the startof your contractual notice period and the date of termination of employment.There may be circumstances where the FCA does not require you to work out your noticeperiod and will pay an amount in lieu of notice in line with your contract of employment.However, if the FCA requires the notice period to be worked, payment of any compensatorysums and the provision of outplacement facilities will be conditional on you fulfilling yourcontract of employment unless you and the FCA agree to a modification of the contractualrequirements.AppealsIf redundancy is confirmed you may appeal against selection for redundancy by using thefollowing procedure. For the avoidance of doubt, as the individual consultation period is anopportunity for you and the FCA to explore alternatives to redundancy, appeals should not belodged during this period.An appeal against selection for redundancy must be made in writing within five working daysof written confirmation of redundancy. The appeal should state the main reasons why youshould not have been selected for redundancy.The appeal should be submitted in the first instance to the HR Director who will normally passthe matter to two senior FCA employees, one from your business area and one from the HRDivision, both of whom will consider the appeal (which will involve a meeting with you). Bothof these representatives should normally have knowledge of the circumstances giving rise tothe redundancy, although if possible they will not have had direct involvement in your positionto date.The appeal will normally be heard within 10 working days of receiving the written reasons forappeal. Right to be accompanied: At the appeal, you may be accompanied by a companion,who may be a Staff Representative or another FCA employee of your choice who may be afriend or colleague. Please note that the fellow employee should not be a member of the HRDivision. Alternatively, you may be accompanied by a Trade Union official. You may confer withyour companion during the course of the meeting, and he/she may address the hearing butmay not answer questions on your behalf.FCA Employee Handbook 2013 130

The outcome of the appeal will be given in writing as soon as reasonably practicable after theappeal has been held.While an appeal is in progress, the contractual period of notice shall continue to run from theoriginal date of notification. Where an appeal is unsuccessful and a redundancy decision isconfirmed, employment will terminate on the date specified in the original written notificationof redundancy. The consequence of a successful appeal will depend on the precisecircumstances of the decision but may include:the extent to which their skills and experience match those required forother jobs;confirmation of continuation in the employee’s original role; oroffer of an alternative roleRe-employmentThe FCA will not normally re-employ an individual who has been made redundant from the FCAwithin a 12 month period from the date of termination of employment.Annex 1: Compensatory payments and pension and benefit rights in the eventof redundancyIf no alternative employment is available within the FCA, to help you prepare for futureemployment FCA will normally provide:outplacement services or relevant in-house facilities for an appropriateperiod; andreasonable time-off to seek alternative employmentCompensatory paymentsWhere an employee is made redundant and the FCA has been unable to offer alternativeemployment, a compensatory payment (inclusive of any statutory redundancy and FCAenhanced payments) calculated according to the formula below, will normally be granted(subject to you signing a compromise agreement):FCA Employee Handbook 2013 131

When there hasbeen service of:More than six monthsand less thantwo years.More than two years.A sum equivalent to the following number of weeks’ of anemployee’s basic salary at the time of leaving13 weeks.13 weeks minimum plus (for all service in excess of two years):two weeks for every complete year of service in excess of two years0.5 week for every complete year of service over age 40 and under age45.1 week for every complete year of service over age 45 and under age 50.1.5 weeks for every complete year of service over age 50.one week’s salary is the equivalent of 1/52nd basic annual salary. A week’s pay is thatwhich the employee is entitled to under his or her terms of the contract at the date ofcalculation. The ‘calculation date’ is the date on which the FCA gives the employee theminimum notice to which he or she is legally entitled.all calculations are subject to a maximum payment of the greater of one year’s salary or£100,000payments are inclusive of any statutory redundancy that may be payable;the calculation of number of weeks’ salary for more than 2 years’ service will be pro-ratedto reflect the actual period of service to the nearest whole monthCompromise agreementAll enhanced compensatory payments, i.e. those in excess of statutory redundancy pay, andoutplacement facilities, are subject to you accepting the terms of a compromise agreement.You will need to take independent legal advice before signing it. This is to ensure youunderstand that by signing such an agreement you waive the right to institute, or continue,with proceedings in an employment tribunal.The FCA will pay for the reasonable cost of taking such advice on the particular issue ofwaiving potential claims up to a maximum of £400 plus VAT. It will not cover the costs oftaking legal advice on any other issues.Other benefitsCore and flexible benefits cease on the date of termination of employment. However, you maynegotiate with the benefits provider continuing membership on an individual, contributorybasis.Who is covered by this policy?This policy covers all employees whose appointment has been confirmed following a successfulprobationary period.Ownership, updates and query managementThis is the FCA’s Redundancy Policy as at March 2013.The policy is owned by the HR Division and has been developed in conjunction with the FCA’sStaff Consultative Committee.FCA Employee Handbook 2013 132

The policy is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 133

Redeployment within the FCA PolicyThe FCA will take steps to find suitable alternative employment for deployees in the followingsituations:At risk of redundancy (see the FCA’s Redundancy Policy);The job is not redundant, but due to medical reasons, an employee is unable to performthe full duties of their current role and as a workplace adjustment the FCA’s OccupationalHealth Service has recommended they move to a more suitable role.PrinciplesWhat you can expect from the FCA:We will attempt to mitigate a redundancy situation, by taking reasonable steps to find yousuitable alternative employment within an agreed timescale.We will attempt to mitigate a dismissal situation, to find you suitable alternativeemployment, within an agreed timescale, if you are unable to perform the full duties ofyour current role due to medical reasons.Your line manager will act as your sponsor by supporting you in your search for a newrole.You will be sent all vacancies for your job level and below in advance of any internal orexternal advertising process.Recruiting managers will consider all relevant deployees for any suitable roles ahead ofany other FCA employees; normally within 3 working days. If deployees expressly informus that they are not interested in applying for the role, then recruiting managers will beable to advertise the role internally/externally before the end of the 3 day period.Roles at a higher contractual job level than your existing role are considered promotionsand will therefore follow the normal advertising and selection process. You will not receiveprior notification of these roles.In supporting you in finding suitable alternative employment, line managers will identifyany training needs you may have (see ‘Training Requirements’).What the FCA expects of you:You are responsible for actively seeking redeployment opportunities and applying forinternal vacancies.You will undertake any training identified for you to allow you to take up an alternativerole.You will keep your manager up to date on roles you are applying for and training you haveundertaken.You will consider all jobs identified by the FCA as being suitable alternative employment;otherwise this could result in the termination of your employment.You will normally have 3 working days from the day you are informed of a vacancy toapply for the role. You can ask the recruiting manager for an extension to this deadline ifyou are not able to apply for the role within that timeframe.Redeployment considerationsFCA Employee Handbook 2013 134

As part of the consultation process (whether formally for at risk deployees, or informally formedical deployees), the FCA will work with you to identify redeployment opportunities. Thefactors which are likely to be taken into account when considering you for any opportunitieswhich may arise within the FCA include:the extent to which your skills and experience match those required forother jobs;your current job level and status;your current salary;location;your adaptability; andwhether you have the potential to do the role with training and whether this is practicablein the circumstances.As far as possible, the FCA will take account of your reasonable wishes when consideringredeployment opportunities. However, the final decision regarding your placement into analternative job rests with the FCA.Training requirementsIf you have the necessary basic skills for a suitable redeployment opportunity and/or thepotential to acquire those skills through further reasonable training, you will normally beconsidered for redeployment.Redeployment may also be considered where a different skill set and/or significant trainingmay be involved, but this will normally be by mutual agreement between you and the FCA. Inall cases the FCA will provide appropriate support to deployees during the redeploymentprocess.For medical deployees, reasonable workplace adjustments that are identified for the new rolewill be provided by the FCA. Your terms and conditions of employment may also have to beadjusted (for example, salary or job level), but you will be consulted should this be necessary.Trial periodsWhenever an offer of alternative employment is on different terms from your current job or therole is substantially different, a trial period will apply. This will be for a minimum of four weeks,but may be extended to a maximum of 12 weeks (unless extended further by mutualagreement) where retraining is required.During this period, you should meet with your manager regularly to discuss your progressagainst any development plan for your new role.During, or at the end of this trial period, you or the FCA may give notice to terminate thecontract of employment if the trial has not been successful.Deployees at risk of redundancyIf you decline to accept a reasonable offer of alternative employment or if you unreasonablygive notice to terminate your employment during the trial period you will not be eligible toreceive statutory redundancy pay, or any compensatory payments (such as an enhancedredundancy payment) or outplacement assistance.FCA Employee Handbook 2013 135

Medical deployeesIf you are not successful in securing suitable alternative employment through theredeployment process, or you or the FCA decides that the trial period has been unsuccessful,your employment may be terminated under the FCA’s Dismissal Procedure.Who is covered by this policy?This policy covers all employees whose appointment has been confirmed following a successfulprobationary period.Ownership, updates and query managementThis is the FCA’s Redeployment Policy as at October 2012.The policy is owned by the HR Division and has been developed in conjunction with the FCA’sStaff Consultative Committee.The policy is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 136

9. Pay, Reward & BenefitsTravel & Expenses PolicyIntroductionThis Travel and Expenses Policy (or “the Policy”) is compulsory and you should seek priorauthorisation from your line manager should you need to deviate from it. It is not possible toset out rules to accommodate every conceivable situation and so you are required not only toadhere to the express terms in this policy but also to exercise your judgement to ensure thatall claims made are within the spirit of the policy. Staff should also be sensitive as to what is“reasonable” in the current business climate.PrinciplesWhat you can expect from the FCAWe will manage any travel costs and expenses in line with the following key principles:all reasonable travel costs and expenses, wholly and necessarily incurred for the executionof the FCA’s business will be reimbursed;all such travel costs and expenses incurred are in express compliance with this Travel andExpenses Policy and / or expense claims are made within the spirit of the Policy;such travel costs and expenses have been incurred in the most cost effective way; andthe FCA reserves the right to reject or reduce claims that are considered to be excessive,are non-compliant with this Policy or are over 90 days old.For this purpose, the following do not count as travel on FCA business:travel between home and permanent workplace. For the avoidance of doubt, the FCA willnormally only reimburse the excess business travel costs which relate to trips beyond yourordinary commute;other travel which is primarily for private purposes; andtravel which is primarily for business purposes but which is substantially the same astravel between home and the permanent workplace.What the FCA expects from youWhen booking travel and incurring expenses please be conscious of the total costs to theFCA. You must:ensure costs are necessary and reasonable;travel to meetings and between offices by the most cost-effective mode of transport,taking into account journey time as well as monetary cost;state the start and end point of each journey and who you were visiting. This informationis necessary for all modes of travel;be reasonably flexible in your arrangements and where possible opt for travel options thatmay be restricted in nature but are cost effective and offer value for money. If you do optfor a restricted fare the restrictions will be explained at the time of booking;FCA Employee Handbook 2013 137

ook travel through FCA approved agent(s); andensure that you obtain pre-authorisation to travel from your line manager by completingan E-request form.It is recognised that there will be exceptional circumstances where it is not possible or practicalto book travel or a hotel through our travel and accommodation agent, Hillgate Travel, forexample, if arrangements are included within a conference package. When there is arequirement to stay in a designated conference hotel or other circumstances mean that it isnot practical to book via Hillgate Travel, if the cost of the hotel is over the pre-authorisationlevel, Line Manager approval is required. Only in these exceptional circumstances are you notrequired to book through Hillgate Travel.The Travel Handbook has been prepared as a guide for travellers and travel arrangers to assistin all areas of travel planning. It outlines the procedure to be followed by FCA staff whenmaking business travel arrangements and complements the FCA’s Travel and Expenses Policy.You are advised to read the Handbook before committing to any travel plans.Contractual information (start)Any attempt knowingly or falsely to claim expenses in breach of the Travel and ExpensesPolicy will result in disciplinary action.Contractual information (end)Process for claiming travel costs and expensesTravel costs and expenses that may be claimed and the procedures for claims, authorisationand reimbursement are set out below.ApprovalIn relation to this policy, the following structure will apply to the approval and authorisation oftravel costs and expenses. For:an Administrator: Associate or above;Associates: Manager or above;a Manager: Head of Department or above;a Head of Department: Director or above;a Director: Managing Director or the CEO or the Chairman;a Managing Director/the COO: the CEO or the Chairman;the CEO: the Chairman;the Chairman: the Deputy Chairman; andNon-executive Directors: the Company Secretary.In addition, the Chairman’s travel costs and expenses will be subject to an annual review bythe Audit Committee.Authorisation limitsFCA Employee Handbook 2013 138

Over-arching this policy, travel costs and expenses can only be authorised within anindividual’s approval limits (also known as the FCA’s scheme for the Delegation of FinancialAuthority).Shared expensesWhere expenses are paid for a group of employees, the most senior employee should pay andclaim the expense. The claim should note the full names of other employees in attendance.Income taxIn some exceptional circumstances expenses payable under this policy may not satisfy HMRevenue & Custom (HMRC) rules, and hence may be taxable. We may make arrangements tomeet the resulting tax liabilities. We reserve full discretion to decide not to make sucharrangements in any given case, but will not act unreasonably in exercising this discretion. Wewill advise you of any such issues before processing your expense claim so that appropriateadjustments can be made to your claim if necessary.ReimbursementExpenses will only be reimbursed if they are:supported by detailed (VAT) receipts, and credit card slips if necessary;submitted on the FCA staff expense claim form;fully completed;appropriately authorised; andclaimed in line with this Policy.Staff should submit expense claims in a timely manner and as a minimum should submitclaims within 90 days of the expense being incurred. You can submit single items on a claimform and you do not need to wait to claim small value items until you have a substantiveamount to be reimbursed. Where claims are received and the expense is over 90 daysold, the FCA reserves the right to refuse payment.In exceptional circumstances, we may consider reimbursing minor claims for travel without theback-up receipt, for example the use of a prepaid Oyster card to travel on FCA business whereno receipt is issued, or tube tickets that are retained as you pass through the ticket barrier.You should still obtain a receipt where one is available or give a full explanation why no receiptis available. This must be included on the expense claim form before you get approval fromyour line manager.Detailed guidance on how to complete the expense claim form is available on My FCA Hub.Corporate American Express charge cardIf you are a permanent member of staff who has passed their probationary period and likely toincur significant expenses on FCA business, you should apply for a corporate charge card.You should claim business expenses incurred using the card on the expense claim form,supported by receipts, in the normal way.The card company will send you, the cardholder, a statement each month, showing all theexpenses charged in that month. The cardholder will be responsible for paying off the balanceon the card each month. We will not reimburse any interest charges incurred as a result of latepayment for using the card.FCA Employee Handbook 2013 139

You should only use the card for expenses incurred in carrying out FCA business. Misuse ofcorporate charge cards will be subject to disciplinary action.Cash advancesCash advances must be obtained via your corporate credit card, by completing an ExpressCash Application Form available from the Staff Expenses team.In exceptional circumstances, if you require an advance for a business trip which issignificantly in excess of the limit allowed by your corporate credit card, your line managermay authorise an advance. Such advances will be paid directly into your normal bank account.You must keep all receipts and submit an expense claim form as soon as you return from thebusiness trip, deducting the advance from the claim.Petty Cash processesPetty Cash should only be used for emergencies. The normal FCA expenses process should befollowed where it is not an emergency. We do not anticipate there will be many occasionswhere the normal expenses policy and process cannot be applied.The rules and principles set out in the Travel and Expenses Policy apply equally to Petty Cashclaims. The FCA reserves the right to refuse some or all of a Petty Cash claim if it is not whollyand necessarily incurred on FCA business and in compliance with the FCA’s Travel & ExpensesPolicy and may seek to recover the cash for invalid claims.A more detailed procedures note for Petty Cash can be found in the Petty Cash Procedures.If there is an emergency and you do need access to the Petty Cash, you will be asked to signthe Petty Cash Register and detail who has approved your Petty Cash claim together with thepurpose of the claim.When you have incurred the expenditure, you will then need to complete a Petty Cash ExpenseClaim Form, detailing the expenditure, attaching original receipts, getting it authorised,ensuring it is in compliance with the Travel & Expenses Policy etc. in exactly the same way thatyou would complete an expense claim form.You will need to return the authorised Petty Cash Expense Claim Form and receipts, togetherwith any remaining cash to the Petty Cash owner in your building.If you have any questions on this process, please send an e-mail to Financial Control.Travel Costs and Expenses by CategoryAir travelTo ensure that the FCA obtains maximum value for money from its travel spend, the followingapply:air transport should only be used when it is the most economical and practicablemethod of travel.all air travel on FCA business should be in Economy Class (see limited exceptionsbelow).in order to obtain the lowest fare, flights must, whenever possible, be booked at least42 days in advance of the date of travel.fully flexible fares should only be selected when there is a business need to do so. Mostdomestic and European restricted air fares can be changed for a small fee even thoughthey may be non-refundable. Therefore, unless there is a high chance of completeFCA Employee Handbook 2013 140

cancellation, restricted fares should be booked. The Hillgate Travel team will explain therules at the time of booking.all flights, including budget airlines, such as Easyjet and Ryanair, must be bookedthrough Hillgate Travel.Air travel on FCA business in Business Class will only be permitted where:In addition:the flight time is more than five hours (to enable staff to be fit for work on arrivalwhere they have a demanding schedule). Premium Economy or equivalent should beconsidered for flights in excess of 5 hours, where there is an overnight break beforeworking; orthere are no seats available in Economy at the time you need to fly; orthe Business Class ticket is less or the same price as Economy Class; orwith the express and specific consent of a Director or above, prior to booking. Wherethe traveller is a Director, then the consent should be provided by their Line Manager.staff must not change Business Class or Premium Economy tickets for Economy ticketsthus enabling them to obtain a personal advantage such as taking family or friends atthe FCA's expense.staff must not book travel and accommodation outside of policy limits with a view toclaiming back the amount that falls within the policy. Staff are not permitted to settlethe difference themselves.Air travel on FCA business in First Class will only be permitted:in exceptional circumstances;and with the express and specific consent of the Chairman, the Chief Executive Officeror the Chief Operating Officer, prior to booking.We will not normally reimburse flights through the expense claim process, but in exceptionalcircumstances, you must support the claim with a valid boarding card or a printed ‘nonrefundableticket’ confirmation when using a low-cost airline where boarding cards are notavailable.Preferred AirlinesFrom time to time the FCA may enter into a preferred airline arrangement with one or moreairlines to certain destinations in order to utilise fully its buying power. Preferred airlineagreements allow either staff members to have discounted fares or they give a rebate to theFCA at the end of the agreement period dependent on amounts spent. Additionally, the FCA isenrolled onto corporate benefit schemes with some European carriers. If there is a preferredairline arrangement in operation on the route you are flying, the lowest available fare fromthat airline will be offered by your FCA Travel Consultant, along with two other flight options.Additionally, your Consultant will offer a no-frills ‘Budget’ carrier if one flies your route. Usingsuch airlines can save considerable amounts of money and must therefore be considered. Therestrictions of the chosen fare will always be given (restrictions may apply regarding changesof flights or routing). You are required to consider using a preferred airline so long as it isconvenient and economical to do so.Currently the FCA have preferred airline agreements with:British Airways and Virgin, who offer up-front discounts,Your Travel Consultant will also offer to investigate alternative airfares such as consolidated(bucket) fares. Such fares are generally restricted in that they carry heavy penalties forchanging flights and cancellations etc. When choosing a flight or ticket option you must choosethe most economically advantageous convenient option. You are required to make a note ofany restrictions in case you need to alter/cancel the flight.FCA Employee Handbook 2013 141

Airline promotions/loyalty schemesAirline promotions, such as free Economy tickets with the purchase of a full Business Classticket, must be considered as they may reduce the overall travel costs to the FCA. Suchpromotions should be used for business purposes if possible. Where it is not possible to usesuch promotions for business purposes, and there are no cost implications for the FCA, suchoffers may be used for private benefit.Staff may accrue promotional benefits such as BA Miles or Airmiles for their own personal use.However, the existence of such benefits must not influence staff when choosing an airline.Hotels and accommodationUnless there are valid reasons not to do so, such as you are attending an event organised bysomeone else, all hotels must be booked through Hillgate Travel on 69971. Where the FCA hasa preferred hotel in the location this should be used where it is possible, economic andconvenient to do so.UK hotels: The pre authorisation level is £150 per night excluding all taxes and breakfast.Overseas hotels: Outside the UK where hotel accommodation is particularly expensive, thepre authorisation level is increased:In Europe: to €200 (Euros) per night, excluding all taxes and breakfast.For all other countries excluding Europe and North America: to the equivalent of £170 pernight, excluding all taxes and breakfast;North America: to US $350 per night, excluding all taxes and breakfast.PaymentAll hotel bills must be settled directly with the hotel on departure. It is recommended that youuse your Corporate American Express Card to settle the bill. However, you may use yourpersonal credit card if you wish.Subsistence – away overnightWe will reimburse reasonable out-of-pocket expenses you incur when a journey on FCAbusiness makes it necessary to stay away from home overnight. You may claim the followingfor each night whilst you are away:hotel bills as above;breakfast – if not included in the room rate, you may claim the cost of breakfast;lunch, evening meal and beverages, to an overall maximum of £45 a day; andother personal incidental expenses to an overall maximum of £5 a night for travel withinthe UK and £10 a night overseas. Other personal incidentals include reasonable personaltelephone calls – wherever possible please use your FCA mobile phone over a hotel phone;newspapers; reasonable and appropriate laundry costs; and beverages.It should be noted that the figures quoted above are not flat rate allowances, but maximumlimits on the amounts of actual expenditure that we will reimburse against receipts.Where a trip on FCA business necessarily involves more than one night away from home,receipted expenditure may be averaged over the number of nights of absence to determine theFCA Employee Handbook 2013 142

amounts to be reimbursed. However, we retain the right to refuse excessive expenditure evenwhen the average is £50 or below per night.Subsistence – no overnight absenceIf you are not away from home overnight, but have to incur extra expense on meals as aresult of having to travel away from your core place of work (e.g. London, Edinburgh) on FCAbusiness, you may claim for meals and beverages up to a maximum of £10 a day, againstreceipts.Please note that meals purchased in your core place of work (e.g. London, Edinburgh) are nota claimable expense.Overseas accommodation and subsistenceThe above rules apply to overseas travel as well as travel within the UK. For travel to overseaslocations where hotel accommodation and meals are particularly expensive, your line managerhas discretion to agree higher cost limits than those for UK travel. This will allow you, whentravelling overseas on FCA business, to obtain accommodation and meals of an equivalentstandard to that available in the UK. This discretion does not apply to the £10 a night limit forthe reimbursement of personal incidental expenses, which may not be increased.Foreign currency must be obtained via the FCA’s approved currency agent or from any othercost-effective source. Cash expenses paid in foreign currency are to be converted to sterling atthe rate used at the time of conversion. Expenses incurred using the Amex Corporate Cardshould be converted at the rate used on your Amex statement.Overseas travelWhere an employee travels to a destination where there may be credible exceptional risks topersonal safety, it may be necessary to make special provision in order to mitigate such risks.Mitigation measures will be recommended by Corporate Protection & Responsibility to thebusiness lead, and these could involve specified accommodation and transport arrangements.These special provisions may lead to the pre authorisation levels being exceeded. Such specialarrangements will be authorised as follows:Travel - as with all travel, the employee requesting the travel should complete ane-form which should be authorised by the employee’s manager before the travel isbooked. In the case that special travel arrangements are required, they must behighlighted on the e-form before it is authorised.Travellers are strongly advised to complete a travel profile via www.hillgatetravel.com.then in the event of an incident/emergency you can be contacted.Expenses - where additional expenses are incurred on the recommendation of CorporateProtection & Responsibility a copy of that recommendation should be attached to theexpense claim form that is eventually submitted.Low profile visitsIf you wish your visit to be low profile, with minimum details pre announced, please contactCorporate Protection & Responsibility.Rail travelStaff must book all rail travel through Hillgate Travel and travel by Standard Class unless thereis a clear business reason to travel Business or First Class. Prior to booking, your Director (orFCA Employee Handbook 2013 143

in the case of Directors, your Line Manager) must specifically approve Business or First Classtravel.'Anytime' fares should only be selected when there is a business need to do so. Advance faresare restricted but should be considered when travelling to a meeting for a specific time. Ifinbound flexibility is required you should consider booking an 'Advance' single outbound and an'Off Peak' single inbound where timings allow this.Overseas RailStaff must book all Eurostar and international rail travel through Hillgate Travel and travel byStandard Premier Class or equivalent, unless there is a clear business reason to travel inBusiness Class. Prior to booking, your Director (or in the case of Directors, your Line Manager)must specifically approve Business Class travel.Business telephone callsIf you make business telephone calls from home or your personal mobile phone you may claimthe VAT inclusive cost of the call. Your claim must give details of the call, identify the businessreason for making it and be accompanied by a copy of the appropriate page of an itemisedtelephone bill, on which the business call is highlighted.TaxisYou are expected to use public transport or your own vehicle and we regard it as normalpractice for you to do so (i.e. when travelling to Central London, use the DLR or Jubilee Line).You may only use taxis where it is cost effective to do so. You must state the full reason forthe use of a taxi on the expense claim form.Late night travel – work to homeWe may, in exceptional circumstances, agree to meet the cost of late night travel from work tohome. Your line manager’s specific approval is required and will only be given in the followingcircumstances (in which case the benefit will be tax-free):where you have to work until 9.00pm or later;by the time you can go home, either public transport is unavailable or it would beunreasonable to travel alone on public transport at that hour;the late working does not follow a regular pattern (for example, every Friday);you do not work late on more than 60 occasions in the tax year; andthe transport is by taxi or similar private road transport.You must ensure that you state the specific start and end points of the journey, e.g. Bank toHighbury, Edinburgh Airport to Haymarket. It is not sufficient to say “Home to Airport”. Youmust also state the time that you left work / the event. If you do not provide these details, thetaxi fare will automatically be classed as taxable on the individual.Mileage AllowancesYou may use your own vehicle or bicycle whilst on FCA business. By claiming for mileageallowances and signing your expense claim form, you will be confirming that you hold a validdriver’s licence (if applicable) to drive in the UK, a current MOT (if applicable) and that yourmotor insurance policy covers you for driving on FCA business. You will need to produce suchdocuments for the FCA if requested.FCA Employee Handbook 2013 144

Where it is cost effective to make a business journey using your own vehicle or bicycle, youmay claim a mileage allowance which provides full compensation for such use (e.g. wear andtear, petrol, insurance etc.). The allowance rates are as follows:AllowancePence per milePost 6 th April 2011Managers and above*:Cars & vans - all business miles in tax year 30Motor cycles - all business miles in tax year 24Bicycles 20Other staff:Cars & vans - first 10,000 business miles in tax year 45Cars & vans - each business mile over 10,000 in tax year 25Motor cycles - all business miles in tax year 24Bicycles 20Managers and above*: includes ALL staff who receive a Manager’s Benefits Allowance (thisincludes Technical Specialists) in their flexible benefits package;You may claim an additional 5p per mile for each passenger carried if they are a fellowemployee making the same business trip;These rates are reviewed annually and updated in line with the HMRC’s published mileageand fuel allowances.Car rentalThe FCA has negotiated favourable rates with Enterprise Rent-a-Car for business use UK carrental. For 2 or fewer passengers you may hire a vehicle of 1.6 /1.8 LitresManual/Automatic/Estate as required. If there are 3 or more passengers, a vehicle up to 2Litres may be hired.EntertainingBusiness Entertaining“Business entertaining” is defined as including hospitality of any kind, including meals,accommodation and gifts – for third parties, i.e. not employees of the FCA.You may carry out business entertaining only where it is within budgetary limits and where it islikely to help the FCA to further its business objectives, i.e. there is a genuine business reasonfor entertaining customers, suppliers, or other business connections in the course ofperforming your duties of employment. You must use our in-house facilities whenever possible.FCA Employee Handbook 2013 145

Subject to these constraints, you may claim reasonable and appropriate entertaining expenses.As a guide, the cost of a meal should not be extravagant or excessive but reasonable inrelation to the status of the employee and the occasion.Details on the expense claim should include:the nature of the entertainment;the total number of people present;the full names of the external guests being entertained and their employer;the full names of all FCA staff who were present;the location of the entertainment; andthe reason for the entertaining taking place.The most senior FCA employee attending the event should reclaim the expense.Where FCA employees are present at the event and their entertaining costs are incidental toentertaining the third party, these expenses may generally be classed as “BusinessEntertaining” rather than “Staff Entertaining” and may be reclaimed.Staff Entertaining“Staff entertaining” is the provision of free or subsidised hospitality or entertainment (projectcompletion celebration events, provision of meals, other kinds of hospitality, gifts, prizes etc.)to an FCA employee, including an FCA employee’s family members, where there is no businesspurpose for the provision of such entertainment.Staff entertaining should be provided only in special circumstances and generally, FCAemployees cannot claim reimbursement for entertaining other FCA colleagues.For clarity, where an event is clearly related to staff entertaining (aside from an annual eventsuch as a Christmas or Summer Party, see below), that event will confer a taxable benefit onthe staff entertained with approximately 70% charged to the FCA in addition to the cost of theevent itself. The FCA will meet this tax liability on behalf of its staff only where approval froma Head of Department or Director has been obtained and the expense claim form has beencounter-signed by them.Details on the expense claim should include:the nature of the entertainment;the total number of people present;the full names of all FCA staff who were present;the location of the entertainment; andthe reason for the entertaining taking place.The most senior employee attending or holding the event should reclaim the expense.Staff Entertaining – Annual EventThe FCA provides one annual event for its employees (normally a Christmas or Summer Party)and this event is available to all permanent and fixed term employees. Agency staff andFCA Employee Handbook 2013 146

contractors may attend the event but for tax reasons must pay their share of the cost. Anynumber of employees can be invited to an event, however employees will only be entitled toattend one event in any given tax year.The FCA has agreed that for the current financial year an amount of £60 per head has beenincluded in the budget to cover the cost of this annual event (note that this is lower than thetax free limit of £150 per person set by HMRC).The £60 allowance includes VAT, booking costs and the cost of transport and/or overnightaccommodation if these are provided to enable employees to attend. Please note the FCA willnot reimburse you for your travel cost home after the annual event or for an overnight stay ina hotel (this is simply HMRC’s ‘definition’ of what the non-taxable allowance covers.)Ordinarily, these annual events will be at Departmental level and there should be only onesingle event for each Department.The budget for annual events is held, controlled and administered centrally by the FinanceDivision. All invoices and expense claims should be submitted centrally to enable monitoring ofthe allowance.Details on the expense claim or invoice should include:the nature of the entertainment;the total number of people present;the full names of all FCA staff who were present;the location of the entertainment; andthe reason for the entertaining taking place.The questions and answers on My FCA Hub provide guidance on the background and processfor approval of the costs associated with the annual entertainment events held for FCA staff.Staff Conferences and Training DaysStaff conferences, away days and training days are not automatically classed as staffentertaining. For such an event to be classed as a business expense (no additional tax burdenfor the FCA) and not staff entertaining (an additional tax burden for the FCA averaging at circa70% on top of the cost of the event), the purpose of the day must be mainly business orientedand clearly evidenced as such (a business agenda should be available for example). Wherethere are more “entertaining” elements to the day, such as a meal with drinks in the evening,a detailed break-down of costs should be obtained so that the FCA can determine whether anadditional tax liability is due to HMRC.The recommended guideline is for 2 such events per annum with a cost of £60 (including VAT)per head per event.GiftsThe cost of gifts given to staff is not normally reimbursable however, in appropriatecircumstances and at the discretion of the budget holder; the reasonable cost of gifts made toemployees will be reimbursed.Gifts will be reimbursed where they are provided on personal grounds. This could include, butis not limited to, say, a gift of flowers for the following:FCA Employee Handbook 2013 147

an employee’s wedding;the birth of an employee’s child; orbereavement.You should state on the expense claim form, the employee’s name, the type of gift and thereason for the gift being purchased.For tax purposes, a gift will generally not be taxable on the employee if it is for less than £50and is made:on personal grounds (examples as above) oras a mark of personal esteem or appreciation (a gift to mark appreciation of work done byan employee during a period of secondment).For clarification, gifts of cash or cash equivalents (i.e. cash vouchers and non-cash vouchers,infinity awards, Canary Wharf vouchers etc.) are not reimbursable and are taxable on theemployee regardless of the amounts involved. The FCA grosses up these amounts and paysthe tax on them.Professional subscriptionsYou may claim the cost of the annual subscriptions to any professional bodies, which are onHMRC’s approved list and are directly relevant to your duties. Discretionary amounts e.g.benevolent fund contributions are not recoverable.If you are required by the FCA, as part of your terms and conditions of employment, to trainfor a qualification which involves admittance to a professional body, we will also reimburse theannual subscription to that body.The request from the professional body should be used to support the claimfor payment.Tax guidance for mobile devicesPlease read the guidance on My FCA Hub about tax implications of mobile phones,Blackberries, smart phones and iPads.Ownership, updates and query managementThis is the FCA’s Travel and Expenses Policy as at April 2013.The policy is owned and has been developed by the Finance Division who has liaised with theStaff Consultative Committee.This policy does not form part of your contract of employment unless otherwise stated. Thispolicy applies to all employees and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 148

Give as You Earn PolicyWe are registered with the Charities Aid Foundation and run Give as You Earn.This scheme enables you to give directly from your salary to the charity/charities of yourchoice. Deductions are made from gross salary before calculation of income tax, thereforegiving you the benefit of tax relief on these contributions. Donations are no longer subject toan upper limit allowing you to contribute as much as you wish.For further information on the scheme please contact * HR Helpline or extension 67070 orcomplete the online application form.FCA Employee Handbook 2013 149

Payment of Salary PolicyPrinciplesWhat you can expect from the FCAWe will manage the payment of salaries in line with the following key principles:Your salary will be paid on 23rd of each month into your nominated bank/building societyaccount(s).If the 23rd falls on a weekend or public holiday, your salary will be paid on the previousworking day. Your secure pay slip will itemise pay, deductions and net amount paid.What the FCA expects from youWe expect employees to:Advise us of any changes which may affect payment of your salary, e.g. bank accountdetails, before the cut-off date for the effective payroll. Personal and bank details shouldbe updated via self-service on Chrysalis.Check you payslips on a monthly basis.The policyPayment of salaryYour secure pay slip will itemise pay, deductions and net amount paid.If you resign, your final salary will be paid into your bank or building society account(s) on the23rd of the month in which you leave and you will receive your P45 in the post after this date.You will be able to access your payslips on iPayview for up to 7 years.We reserve the right at any time and in any event on termination of employment, to deductfrom your pay (including holiday pay, sick pay, maternity payments and any other type of pay)any amounts that you owe. These may include season ticket loans and/or other loans;expenses allowance; holiday taken in excess of entitlement; repayment of training expensesincurred under a sponsored study arrangement; a deficit of hours under the flexitime scheme;or the estimated value of any FCA property damaged by you/ retained by you withoutpermission when you leave. Your final payment will reflect any adjustments, where applicable.We also reserve the right to deduct from your pay an amount equal to any allowance youreceive in the course of performing public service or while on jury service.If you have any enquiries regarding your pay statement, contact the HR Helpline x67070.Income Tax, National Insurance Contributions and other Statutory DeductionsTax, National Insurance Contributions and any other statutory payments are deducted fromyour pay on a regular basis. We have a statutory right to make other deductions from yourpay, for example, if you owe money to the FCA as a result of any overpayment ofremuneration or expenses or in order to comply with a court order.Should you need to communicate with the HM Revenue and Customs, please quote referencenumber 948/TZ03483. This reference number applies to all FCA employees. You also need toquote your National Insurance number which appears on your pay slip.Income Tax QueriesHM Revenue and CustomsFCA Employee Handbook 2013 150

Pay As You EarnPO Box 1970LiverpoolL75 1WXTelephone Number: 0845 3000 627National insurance queries: 0845 302 1479Telephone Number: 0845 3021479Tax guidance for mobile devicesPlease read the guidance on My FCA Hub about tax implications of mobile phones,Blackberries, smart phones and iPads.Changes in your account detailsYou must tell us about any changes required to your bank/building society account by updatingthe “Amend Bank Details” section via Employee Self-service on Chrysalis.Account changes must be received by Payroll cut-off in that month to allow for processingchanges. Forms received after these dates will be carried forward for action the followingmonth.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Payment of Salary Policy as at April 2013.The policy is owned by the HR Division and has been developed in conjunction with the FCA’sStaff Consultative Committee.The policy is not contractual and is subject to change at the discretion of the FCA – we willpublish any changes on the intranet.Any questions on how the policy applies should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 151

Salary & Benefits PolicyThe FCA aims to provide a competitive total remuneration package in support of its uniqueposition and employee proposition, starting with a fair and sustainable base salary aligned tothe relevant external market.FCA financial rewards comprise base salary, flexible benefits (core and enhanced), pension andan annual individual incentive opportunity. These benefits are offered to all employees, bothpermanent and fixed-term. This policy sets out our reward strategy and the approach todetermining the total (financial) reward package.This section also covers the processes relating to pay transactions e.g. payment of monthlysalary, reclaiming expenses, payment while on sick leave or maternity leave.Also included here is reference to other policy areas which have an effect on salary and/orbenefits, with a link to the relevant policy where appropriate.PrinciplesWhat you can expect from the FCAWe will:provide you with access to fair and sustainable base salaries;make available to you salary ranges for job families;ensure that salary data / job family information is accurate and up to date;ensure that you receive clear messages about why you receive a particular salary / andabout your ‘position in range’;provide an annual statement of your total remuneration;provide all other salary and benefits information promptly(e.g. salary slips, P60s);ensure that you are treated fairly with regard to rewards – we will conduct an annualequal pay audit to ensure the pay review process is deployed equitably;maintain confidentiality surrounding salary and benefits, releasing only on a ‘need toknow’ basis;pay overtime only for periods of more than one hour in any day. After that, payment willbe made for each completed period of 15 minutes worked. Eligible full time staff will notbe paid overtime until they have worked at least 36 hours in the relevant week. Part timestaff will be paid overtime at their normal hourly rate until they have worked 36 hours inthe relevant week.Payments will be made through the payroll. Please note that the cut-off date for inclusionin the payroll is normally the 7th of the month (Staff Expenses timetable).What the FCA expects of youIt is your responsibility to ensure that you understand your pay position within your jobfamily; your line manager will explain this to you.If you do not understand or feel that your salary is incorrectly positioned you should raisethis with your line manager in the first instance.FCA Employee Handbook 2013 152

You should check that your salary details are correct in your monthly payslip. If yoususpect that your remuneration information (e.g. monthly salary slip) is incorrect tell theHR Helpline immediately.Tell the HR Helpline immediately if you change any bank details or if your personalcircumstances change, as this may affect entitlement and eligibility to certain elements ofthe flex account.You must obtain prior approval from your line manager before workingpaid overtime.Claims must be made monthly, for overtime worked in the previous month, on authorisedclaim forms.What are the responsibilities of line managers?As a line manager, you must:ensure that your employees are told why their salary is positioned where it is withreference to their job family;ensure you treat all employees fairly when allocating salaries and annual individualincentive awards;keep a written record of all salary and annual individual incentive award decisions and therationale behind them with reference to peer group comparisons to ensure that we areable to show how an employee’s salary has been reviewed and if applicable how an annualindividual incentive aware was decided; this normally takes place annually through theannual pay review process; andcontact the HR Helpline in the first instance to discuss interim salary reviews or retentionpayments.The policyReward strategyThe FCA’s Reward Strategy focuses on rewarding those who:demonstrate successful and consistent delivery against objectives;make a significant overall contribution to the FCA’s regulatory goals; anddemonstrate the values and behaviours that FCA expects and requires.Incentives are available to all employees and are targeted in particular at ourhighest performers.Flexible benefits and pensions are provided to all permanent and fixed-term employees tocomplement the FCA’s comprehensive reward package, these form part of your totalremuneration package.This policy section covers the salary elements and benefits available to employees and also theprocess for reviewing salary and annual individual incentive award.The FCA sets its base salaries with reference to the financial and non-financial sectors; thesebenchmarks are used to generate our job families.FCA Employee Handbook 2013 153

As a general principle, salaries at the FCA are positioned at, or close to, the median for therelevant job family and level. Positioning with reference to the median is determined by arange of factors including, but not limited to, experience, skills and affordability. New staff andthose whose experience is limited can expect to be positioned initially below the median and,on demonstrating competence against the FCA’s published Behavioural Framework, can expectto make progress towards the median. Some highly experienced staff will be placed above themedian to reflect their expertise and expected contribution. In any population, it would beexpected that there will be a range of salaries at, above and below the median of any givensalary range, consistent with a normal distribution pattern and reflective of a mixed populationof highly experienced and less experienced employees.Elements of remunerationAll permanent and fixed-term employees are eligible to receive the following core contractualelements of remuneration:Base salaryThis is the basic salary for your role and determines all other benefits including pensioncontribution made by the FCA, flexible benefits allowance, incentive, overtime (if appropriate),holiday and sick pay.PensionThe FCA operates a non-contributory pension plan for all employees. Employees are offeredpension benefits in the Money Purchase part of the Plan.Core BenefitsThese are the benefits provided to all permanent employees by the FCA which sit outside theFlexible Benefits Plan and which form part of your Contract of Employment. In addition to coreholidays (23 days for all full time staff), these include life assurance, permanent healthassurance and private medical insurance.Base salary and Core benefits are contractual elements and form part of your PersonalStatement of Terms and Conditions of Employment.Non-contractual elements of remunerationFlex accountThe flex account is an amount of money you receive each month to enable you to choose yourpreferred combination of benefits to suit your needs and lifestyle, in addition to the CoreBenefits. Your flex account is determined by your base salary; further details on how it iscalculated here:Flexible Benefits accountFurther information on flexible benefits can be found at:Flexible BenefitsNon-financial benefitsIn addition we also offer a comprehensive range of non-financial benefits including:interesting jobs offering a unique insight into financial services;the chance to contribute first-hand to the financial well-being of millions of UK consumersand to the health of our financial markets;FCA Employee Handbook 2013 154

access to highly rated learning and development opportunities;a range of flexible working options; andsubsidised fitness centre, staff restaurant and on site health services.Annual Individual Incentive PlanThe FCA operates an annual individual incentive plan which is available to all employees. Thisis a discretionary plan and offers employees the opportunity to receive a payment of up to35% of their annual salary, depending on their performance and contribution.Incentives are non-pensionable and not guaranteed. The incentive plan is reviewed regularlyand may be changed without notice. Getting an incentive payment one year does not meanyou will receive payment in subsequent years.Employees will be excluded from the incentive plan if:they have given or received notice of termination of employment; orhave less than three months’ service at 1 April.Other situations: The following employees may be excluded:if they have been subject to sanctions (e.g. warnings) under disciplinary procedure withina period to be determined by the FCA in each case; orare on any stage of the Disciplinary and / or Performance Management procedures.Salary review processSalaries are reviewed annually in April. The pay review process is carried out in the firstquarter of the year following appraisals. All employees (including fixed term) are eligible toparticipate in the annual salary review with the exception of employees:with less than three months’ service at 1 April will not be included in the pay review forthat year;who are on probation will be included (provided they have more than 3 months’ service at1 April) but any increase will not become effective until their probation has beenconfirmed;who have given or received notice of termination of employment;who are under a (‘Stage 2’ or above) Disciplinary investigation (although dispensationmay be given to Stage 1 investigations); orwho have received an interim salary increase between 1 January and 1 April.Interim salary review policyThe annual salary review takes place in April. Most FCA employees will have their salaryreviewed at this time. However, some circumstances may give rise to the need to consider aninterim salary review, including:promotions (changes to contractual grades not movement between job families);FCA Employee Handbook 2013 155

if an individual has made significant progress within a job family to the extent thatcomparison with the next level in the job family is more appropriate and was either notapparent or not taken into account at the previous pay review; orrapid change in external market conditions – although line managers should also considerthe use of a retention bonus to ease a short-term pressure on salaries(see section below) – that mean salaries have risen sharply and the FCA is at risk of losingkey staff whose departure could affect our ability to deliver against key external priorities.Line managers should consult with the HR Helpline for further guidance on making interimsalary awards, in particular to discuss the risks of losing key staff and alternative measures forretaining key skills.Interim salary increases are funded by the sponsoring business unit and should be agreed bythe appropriate HoD, Director and Senior HR Business Partner.Retention bonus policyThe FCA recognises the need to identify and retain key skills in order to deliver our businessplan. Talent management plays a key role in the identification, development and retention ofskilled employees. However, in some situations we may need to consider paying additionalbonus in order to retain certain individuals. Examples include:to align with the delivery of a critical project;to keep an individual in position for a particular period of time; andto retain key skills within the FCA.Links with other policiesPay, rewards and benefits have close links with other policy areas, including the following:Absences: Pay and Benefits in connection with absencesSee the Sickness Absence Policy for details of sick pay.Salary and annual individual incentive awardShort and extended absences will not affect pay and annual individual incentive awards,although pay increase and payment of annual individual incentive awards will be deferred untilthe employee returns.Long-term absences will trigger (if any annual individual incentive award payable) a pro rataamount to reflect the actual amount of time at work, and therefore your actual contribution.If an employee is absent for more than 130 days in the performance year (i.e. for more thanhalf the number of eligible working days in the performance year), they will not receive anannual individual incentive award for that year.Summary of the overtime processIn certain circumstances it may become necessary to work additional hours in order to meetthe demands of a particular project or task. Currently Administrator/Secretary grades areeligible to be paid overtime. Eligibility is not a contractual right and any paid overtime must beagreed with your Divisional Director before the additional work commences. Overtime will onlybe paid for pre-agreed project work or role-specific tasks that cannot be carried out duringnormal working hours and such exceptional circumstances as agreed by the Director (completethe overtime eform).FCA Employee Handbook 2013 156

If you are an Associate (with Associate benefits) in the Information Systems, Property &Workplace, or Corporate Security areas, you may be entitled to be paid overtime (see below).There is no contractual entitlement to overtime working. All overtime must be authorised inadvance by the Divisional Director.Your Personal Statement will state whether you are eligible to receive payment for authorisedovertime.The following overtime rates apply for Administrators/Secretaries:Monday to FridaySaturday, Sunday and Bank Holidays1.5 x pensionable hourly rate2.0 x pensionable hourly rate.Overtime will only be paid for periods of more than one hour in any day. Eligible full timeemployees will not be paid overtime until they have worked at least 36 hours in therelevant week, i.e. you must work one hour past your standard hours to be able to claimpre-approved overtime. After that, payment will be made for each completed period of 15minutes worked.Part time employees will be paid overtime at their normal hourly rate until they haveworked 36 hours in a week (the equivalent for full time employees). After that anyapproved overtime payments will be paid at 1.5 or 2 times the hourly ratePayments will be made through the payroll. Please note that the cut-off date for inclusionin the payroll is normally the 7th of the month.The cost of overtime will be charged to your departmental cost centre.Out of hours working policy for Associates (with Associate contractual clauserelating to overtime) in the Information Systems Division, Property & Workplace,and Corporate Security DepartmentsThe policy applies to Associates whose contracts of employment indicate that they are entitledto overtime payments.Where possible, out-of-hours working, whether planned or unplanned, will be dealt with by useof rota/staggered hours. Additional hours worked, which cannot be accommodated in this way,will normally be compensated by time off in lieu. In exceptional circumstances, provided thatother methods have been ruled out, Directors may use their discretion to allow overtimepayments.Payment arrangements are currently as follows:Monday to Friday - Time off in lieu wherever possible, payment of time and a half where itis not possible. Payment will not be made for periods of less than one hour in any day.After completion of one hour, payment will be made for each completed period of 15minutes worked.Weekends (attendance commencing between midnight Friday and 5am Monday) or publicholidays - flat rate payment of £80 plus time and a half for all hours worked (paid by thequarter hour).All out-of-hours working must be approved in advance by the Divisional Director.Contractual Information (start)FCA Employee Handbook 2013 157

Adjusted salaryThis is the amount that you are paid after applying any increase or reduction to your basicsalary as a result of the flexible benefits plan. If there are no adjustments resulting from theFlexible Benefits Plan, this will be your basic salary.For a full explanation of the Flexible Benefits Plan and how it works, please see the FlexibleBenefits Plan booklet. The flexible benefits plan is not incorporated by reference into yourContract of Employment.Confidentiality of salaryDetails of your basic salary and/or flex account will be treated by the FCA as confidentialinformation. We will only disclose this on a ‘need to know’ basis.Salary reviewYour basic salary is normally reviewed annually on 1 April. Any increase will be at thediscretion of the FCA and you will be notified about this in writing.All FCA employees will be included in the annual pay review except for those who, as at 1April:have been employed by the FCA for three months or less;have either given, or received, notice of termination of employment.If you join the FCA after 31 December in any year, you will not be included in the pay reviewfor that year. If you are on probation as at 1 April and but joined the FCA before 31 Decemberyou will be included in the pay review, but any increase agreed will not be awarded until afteryou have successfully completed your probationary period and your appointment has beenconfirmed.Contractual Information (end)Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Salary& Benefits Policy as at April 2009. The policy is owned by the HRDivision and has been developed in conjunction with the FCA’s Staff Consultative Committee.The procedure is not contractual and is subject to change at the discretion of the FCA – we willpublish any changes on the intranet.Any questions on how the policy applies should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 158

10. Performance, Discipline and GrievanceDisciplinary ProcedureThe FCA believe in creating a working environment where our employees know what isexpected from them – this includes following reasonable instructions, complying with the termsof their contract of employment and adhering to the FCA’s conduct policy, security andcompliance standards.We believe in managing our employees fairly and consistently, but where conduct does notmeet our expectations, we will discuss the improvements required and take whatever action isrequired.PrinciplesWhat you can expect from the FCAWe will manage any concerns about conduct in line with the following principles:We will discuss any concerns we have with you and listen to what you haveto say.We will use informal processes to try to resolve matters wherever possible.We will not take formal action until we have undertaken a thorough investigation.We will keep any action and paperwork confidential – as far as we can.We will follow this disciplinary procedure if formal action is needed.We will treat you fairly and if necessary may vary these procedures where individualcircumstances require it.What the FCA expects of youComply with reasonable instructions, the terms of your contract of employment and theFCA’s conduct, policy, security and compliance standards.Discuss any issues that affect your work with your manager in the first instance.The Disciplinary ProcedureThe FCA’s Disciplinary Procedure has three stages and we reserve the right to initiate theprocedure at any stage taking into account the alleged misconduct of an employee and all thecircumstances of the matter.Stage 1 – First written warning: If your conduct has failed to meet expected standards,despite interventions from your line manager (for clear desk breaches there might not be anyinterventions), you will be required to attend a disciplinary hearing chaired by your Manager.The exact nature of the suspected misconduct will be explained in full. If your Managerbelieves it to be justified, you may be given a written warning, which will give details of thecomplaint (misconduct) and will warn that further action will result if there is a repetition of themisconduct or no satisfactory improvement within a specified period. The written warning willcontain specific actions and/or objectives that need to be fulfilled in order for agreedimprovement to take place. A copy will be placed on your personal file, but will be disregardedfor disciplinary purposes after six months subject to satisfactory conduct.FCA Employee Handbook 2013 159

Stage 2 – Final written warning: If the misconduct is sufficiently serious or if, following aformal written warning, there is a further incident of misconduct within the period specified(whether or not of the same nature or severity), you will be required to attend a disciplinaryhearing chaired by your Director/Head of Department. Your Director/Head of Department willthen decide on the action to be taken. If he or she believes the complaint of misconduct to bejustified, you may be given a final written warning stating that if your conduct does notimprove during a specified period, dismissal, or some other specific action, will result. Thewarning will contain specific actions and/or objectives that need be fulfilled in order for agreedimprovement to take place. A copy will be placed on your personal file, but will be disregardedfor disciplinary purposes after 12 months subject to satisfactory conduct (although inexceptional cases the period may be longer, or the final written warning may not bedisregarded).Stage 3 – Dismissal: If your misconduct is sufficiently serious, or if your conduct is stillunsatisfactory following a final written warning and you fail to reach the required standards,you will normally be dismissed. The decision to dismiss will be taken following a disciplinaryhearing by a panel comprising a Director and/or Head of Department who have not beeninvolved in the investigation, plus a member of the HR Division who will be there to provideprocedural guidance. Any decision to dismiss will be taken following a thorough review of allthe evidence.General misconductExamples of general misconduct include (but are not limited to):persistent poor time keeping;unauthorised absence and/or poor attendance record;failure to observe FCA procedures;unreasonable refusal to follow reasonable instructions or work request issued bya manager;failing to deal promptly, efficiently and politely with third parties with whom you havedealings on behalf of the FCA; andrude or abusive behaviour;failure to maintain effective working relationships.In the case of general misconduct you will normally be issued with a written warning for afirst offence and recommendations may also be made about withholding or deferring thereceipt of annual individual incentive award payments and/or pay rises.Gross misconductExamples of gross misconduct include (but are not limited to):fraud, theft, dishonesty or obtaining or attempting to obtain an advantage atthe expense of the FCA or any person, firm or organisation that is regulated by the FCA; offering or accepting bribes under the Bribery Act 2010;falsification of records, reports, accounts, expense claims orself-certification forms;physical assault of another employee or member of the public;FCA Employee Handbook 2013 160

damage to or deliberate misuse of company property including use ofthe Internet;being under the influence of alcohol, drugs or other substances that impair performance orconduct while at work (including attending any event, whether social or otherwise at FCApremises or elsewhere);being convicted of any criminal offence (whether or not relating to employment), which inthe opinion of the FCA, seriously undermines the FCA’s confidencein you;deliberate acts of discrimination, harassment or victimisation in breach of the Equality ofOpportunity Policy or Bullying & Harassment Policy, or instructing or aiding someone tocommit an act of discrimination, harassment or victimisation in breach of the Equality ofOpportunity Policy;making false statements about one’s own or another employee’s work, the falsification ofworking papers, or the making of any statements likely to be detrimental to the reputationof the FCA;misuse of the Whistleblowing Policy by knowingly raising false and malicious allegations;subjecting a colleague to a detriment or otherwise victimising a colleague who has raisedconcerns, made a complaint or given evidence or information under the WhistleblowingPolicy or under any other FCA policy or procedure;repeated failure to comply with a reasonable work request;bringing the FCA into disrepute.We reserve the right to dismiss you, without notice or pay in lieu of notice, if in our opinionyou have committed an act of gross misconduct.SuspensionIf you are suspected of gross misconduct, you may be suspended from work on full pay andcontractual benefits while we carry out an investigation.If gross misconduct is not initially suspected or believed to have occurred, but during thecourse of an investigation the person conducting it reasonably forms the opinion that a seriousbreach of discipline may have occurred, you may then be suspended.Any decision to suspend will be confirmed in writing within three working days and will confirmthat the nature of the suspension is precautionary, not disciplinary, pending the outcome ofthe disciplinary investigation. The period of suspension will be as brief as possible and will bekept under review.InvestigationThe FCA will promptly and thoroughly investigate any matter where we reasonably suspect orbelieve that conduct is not in line with our expectations. The investigation will be as thoroughas possible. You will be asked to supply any evidence relevant to the investigation and will benotified when it has concluded.Depending on the circumstances of the case, you may be invited to attend an investigatorymeeting. If such a meeting is held prior to a disciplinary hearing, you will be informed at theoutset that the meeting is an investigatory interview. The FCA reserves the right to dispensewith an investigatory meeting and to proceed directly to a formal disciplinary hearing.FCA Employee Handbook 2013 161

In most cases the investigator(s) will not normally be involved in making decisions relating tothe outcome of the case and will only attend any disciplinary hearing in order to present factsand supporting materials (as required). However, where the FCA considers it appropriate, theinvestigator may also act as the decision maker in a disciplinary hearing.Right to be accompaniedYou are entitled to be accompanied at formal disciplinary meetings by a companion, who maybe a Staff Representative or another FCA employee of your choice who may be a friend orcolleague. Please note that the fellow employee should not be a member of the HR Division.Alternatively, you may be accompanied by a Trade Union official. The meeting may bepostponed, at your request, for up to five working days if your chosen companion is notavailable to attend on the date set for the meeting.Disciplinary hearingPreparing for the hearingWhere there are reasonable grounds to believe that you have committed an act of misconduct,you will be invited to attend a disciplinary hearing. Prior to any disciplinary hearing, the FCAwill provide you with:at least 3 working days’ advance notice of the hearing;details of the time and venue;details of the purpose of the hearing, potential sanctions (where appropriate) andconfirmation that it will be held under the FCA’s disciplinary procedure;written details of the nature of your alleged misconduct plus all copies of relevantdocumentation that the FCA intends to rely upon at the hearing;instructions that either party should notify the opposite party of any intention to callwitnesses or supply witness statements.If you are unable to attend the disciplinary hearing and provide a good reason for failing toattend, the hearing will be adjourned to another day. The FCA will give at least three workingdays’ advance notice of the revised hearing. Unless there are special mitigating circumstances,if you are unable to attend the rearranged hearing, it will take place in your absence. You willalso be allowed to make written submissions in such a situation. Your companion or tradeunion official may attend in such circumstances and will be allowed the opportunity to presentyour case.The hearingThe disciplinary hearing will normally be conducted by your line manager, unless a more seniormanager is required (see stages above).You will be given a full explanation of the case against you and be given the opportunity tostate your case and put forward an explanation of your conduct and/or mitigating factors.The FCA may adjourn disciplinary proceedings if it appears necessary or desirable to do so(including for the purpose of gathering further information). You will be informed of the periodof any adjournment. If further information is gathered, you will be allowed a reasonable periodof time, together with your companion (if any), to consider the new information beforereconvening the disciplinary hearing.FCA Employee Handbook 2013 162

As soon as possible after the conclusion of the disciplinary proceedings, the decision maker (ortheir nominated alternative) will convey the decision to you and will inform you of whatdisciplinary action, if any, is to be taken. The decision will be confirmed in writing. You will benotified of your right of appeal under this procedure.Disciplinary actionWhere the FCA establishes that you have committed a disciplinary offence, the followingdisciplinary action may be taken:If the misconduct is serious a First Written Warning may be given. If the conduct is sufficientlyserious a Final Written Warning maybe issued.If, following a First Written Warning, there is a further incident of misconduct (whether or notof the same nature) within the period, a Final Written Warning may be issued.If the misconduct is sufficiently serious or if conduct is still unsatisfactory following a FinalWritten Warning, you will normally be dismissed. Where the FCA establishes that you havecommitted an act of gross misconduct, you may be summarily dismissed without notice or payin lieu of notice, following an investigation and hearing.Alternatives short of instant dismissal may be considered at the absolute discretion of the FCA.We may use one or more of the following depending on the circumstances:Suspension without pay up to a maximum of 7 days.Demotion to a more suitable job, if available.Transfer to another department/division.The alternatives short of dismissal mentioned above are not exhaustive and the FCA reservethe right to take any action we consider appropriate in the circumstances.In addition to formal action, consideration will be given to withholding or deferring the receiptof annual individual incentive award payments and/or pay rises.While any formal warnings are in place, you are required to disclose the matteras part of the internal recruitment process, should you decide to apply for an advertised role.AppealsYou may appeal against any disciplinary sanction imposed against you.Appeals may be lodged on a number of grounds, including:new evidence coming to light;the decision being wrong or unreasonable;the inappropriateness of any penalty imposed; andprocess or procedural irregularities.Any appeal against the issue of a written warning or dismissal must be lodged in writing withthe appropriate manager (see table below) within five working days of being informed of thedecision that has been made detailing the grounds for appeal.FCA Employee Handbook 2013 163

Action Taken by Appeal to Appeal heard byFirst written warning Line Manager Manager of personwho issued thewarning.Manager of person who issuedthe warning.Final written warning Director/Head ofDepartmentManager of personwho issued thewarning.Manager of person who issuedthe warning.DismissalDirector and/or Headof DepartmentHR DirectorTwo people who will be senioremployees of the FCA and notinvolved in the case to date.The FCA will normally hold the appeal meeting within ten working days of receipt of the writtenrequest where possible, and will give at least three working days’ notice of the meeting.The manager hearing the appeal must decide on the basis of representations from you and themanager, together with any subsequent facts that may have come to light, whether to upholdthe decision that has been made.An appeal against dismissal will be heard by two people appointed by the HR Director, who willbe senior employees and who will not have been involved in any action previously conductedunder the disciplinary. A member of the HR Division will also be present to take notes and giveprocedural advice when required.The outcome of the appeal meeting and the reasons for the decision will be confirmed inwriting as soon as possible.At the appeal, any sanction imposed will be reviewed but cannot be increased.Where an appeal against dismissal fails, the original decision to dismiss will have hadimmediate effect and, if the dismissal is by notice, the period of notice will already havecommenced on the date that the decision was given. If the original decision was to dismissimmediately without notice, the FCA is under no obligation to pay for any period between thedate of the original dismissal and the appeal decision – the original date of termination willstand unless the decision to dismiss is overturned on appeal.TimelinesThe timelines provided in this procedure are intended as a guideline. Although in many caseswe would expect the process to operate more quickly, there may be occasions where it provesimpossible to meet the timelines. This may include, for example, occasions where keyparticipants in the process are not available due to holiday. Similarly, the timescales may needto be extended if the matter is especially complex and requires detailed investigation. In thesecircumstances you will be told the date by which you can expect a response and every effortwill be made to complete the process as quickly as possible.Who is covered by this policy?This procedure covers all employees.Ownership, updates and query managementThis is the FCA’s Disciplinary Policy as at September 2013.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.FCA Employee Handbook 2013 164

The procedure is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 165

Dismissal ProcedureFrom time to time the FCA needs to terminate the employment of an employee; for example,when we do not confirm a probationary period, or for reasons of unacceptable conduct orcapability.The purpose of this policy is to ensure a consistent and fair approach to dismissal is appliedacross the FCA.PrinciplesWhat you can expect from the FCAWe will manage any dismissals in line with the following principles.We will let you know in writing why we are considering terminatingyour employment.We will meet with you and listen to what you have to say.We will make a decision based on the information available to us.We will let you appeal against any decision to dismiss.We will treat employees fairly and if necessary may vary these procedures if individualcircumstances require it.What the FCA expects of youWe expect you to meet with us and share your views on the proposed dismissal so we canmake a decision based on full information.The Dismissal ProcedureThere are three basic steps within the FCA’s Dismissal Procedure. These are summarised asfollows.Step 1 – We will write to you explaining that the FCA is intending to terminate youremployment and the reasons why. You will be invited to attend a meeting, at which you will begiven an opportunity to discuss the matter in more detail with us.Step 2 – A meeting will be held and you will be given the opportunity to discuss the possibletermination of your employment and the reasons for this. After the meeting, we will considerthe proposal in light of any representations you make and a decision will be made aboutwhether or not to proceed with a termination. You will be informed of the decision in writingand (where dismissal is confirmed) of your right to appeal.Step 3 – If you wish to submit an appeal, you should do so in writing to the HR Director withinfive working days of receiving the decision. Your letter should make clear the reasons why youbelieve the decision should be reviewed.You will be invited to attend an appeal meeting, which will take place within ten working daysof receipt of your written notice of appeal.The appeal will be heard by a more senior manager, who has not been involved in any of themeetings or discussions previously carried out under this procedure.The outcome of the appeal will be confirmed to you in writing as soon as possible after theappeal has been held. The decision made at the appeal will be final andFCA Employee Handbook 2013 166

there is no further right of appeal. Where an appeal against dismissal fails, the effective dateof termination of employment will be the date on which you were originally dismissed.Right to be accompaniedYou are entitled to be accompanied at formal dismissal meetings by a companion, who may bea Staff Representative or another FCA employee of your choice who may be a friend orcolleague. Please note that the fellow employee should not be a member of the HR Division.Alternatively, you may be accompanied by a Trade Union official. The meeting may bepostponed, at your request, for up to five working days if your chosen companion is notavailable to attend on the date set for the meeting.TimelinesThe timelines in this procedure are intended as guidance.Who is covered by this policy?This procedure covers all employees.Ownership, updates and query managementThis is the FCA’s Dismissal Policy as at April 2009.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The procedure is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment unlessotherwise stated.FCA Employee Handbook 2013 167

Grievance ProcedureThe FCA is working to become an organisation where employees feel stimulated, developedand able to give their best to their work. However, we are aware that from time to time,employees may be unhappy about certain aspects of their working life.We believe that most concerns can be dealt with quickly and informally if the employee andline manager have open and honest conversations. However, there are times when concernscannot be resolved in this way.The purpose of this policy is to provide employees and line managers with an approach forraising and addressing a diverse range of work concerns in a fair and timely manner and asclosely as possible to the point of origin.PrinciplesWhat you can expect from the FCAWe will manage concerns raised about working life in line with the following principles and will:deal promptly with any concerns you raise and listen to what you have to say;try to address concerns as closely as possible to the point of origin;establish the facts of a complaint, conducting an investigation where required;attempt where possible to deal with concerns informally;follow this grievance procedure if informal processes have not worked;keep any actions and paperwork confidential – as far as we can;treat employees fairly and vary these procedures if necessary, e.g. if they place disabledemployees at a disadvantage; andsupport all parties to the process in a sensitive and appropriate way.What the FCA expects of youWe expect employees to:use informal processes to try to resolve their concerns wherever possible;raise any grievance as soon as possible after the event giving rise to thecomplaint (as a general guide we suggest that it should normally be raisedwithin two weeks);put your complaint in writing if you are using the formal stages of thegrievance procedure;explain how you would want your concerns to be resolved; andkeep the details of the grievance confidential.The Grievance ProcedureThe FCA’s formal grievance procedure has three stages preceded by aninformal stage.Informal stageFCA Employee Handbook 2013 168

As most complaints and grievances can be resolved informally by discussion with yourimmediate line manager, the first stage in dealing with most problems is to book a meetingwith them and talk about it. Dealing with problems in this way can often lead to a quickresolution, as your line manager may be able to resolve the matter directly.Where appropriate, consideration could be given to the use of an independent third party toresolve the problem.Formal stageSometimes you may not be able to resolve your grievance informally, or the matter maydirectly concern your immediate line manager and you may not feel that it is appropriate toraise it with them. In this case you need to follow the formal process below.Stage 1 – Raise the matter in writing with your line manager. If your grievance is about a linemanager, you should raise it with the person they report in to. You need to make clear thatyou are raising a formal complaint under the FCA’s grievance procedure, provide as muchdetail as possible about your complaint and sign and date your letter.A meeting will be arranged with you in order to discuss your concerns – wherever possible, themeeting will take place within ten working days of receipt of your written grievance.You will be given the opportunity to present your complaints at the meeting and shouldprovide any documents or names of witnesses you intend to rely on.The FCA will consider and respond to your grievance in writing, normally within20 working days of the meeting.Stage 2 – If you are dissatisfied with the outcome of the grievance process, you can write tothe HR Director stating the reason why you disagree with the previous decision. You should dothis within ten working days of being notified of the decision in Stage 1.Although the HR Director will review your case and be responsible for making a final decisionon your case, they may nominate a representative from within the FCA to help compile theevidence and make a recommendation. The HR Director or nominated person will obtain all therelevant records, gather any additional information and reconsider the matter.If necessary, a further meeting will be arranged, but in any event, wherever reasonablypracticable, a decision will be made and confirmed in writing within 20 working days of thedate of referral. This decision will be final.Work concerns covered by this procedureThis procedure should be used for general work concerns, such as (but notlimited to):breaches of your statutory employment rights;not applying FCA procedures or policies correctly;not allocating overtime, work duties or holiday dates fairly;unfair working practices e.g. not signing off expense claims;complaints about your work, working conditions, pay and benefits, working hours andworking relationships; andtreatment by colleagues.FCA Employee Handbook 2013 169

Work concerns not covered by this procedureThis procedure should be not used for breaches of our Equality of Opportunity Policy, such as:victimisation;bullying;harassment;discrimination.Complaints of this nature should be raised in accordance with the procedure provided in theEquality of Opportunity and Bullying & Harassment policies.This procedure should not be used for the purposes of whistleblowing. Concerns of this natureshould be raised in accordance with the procedure provided in the Whistleblowing PolicyInvestigationThe FCA will promptly and thoroughly investigate any grievance that is raised. The extent ofany investigation will depend on the particular circumstances of the case. The employee will benotified of the investigation and when it has concluded.Right to be accompaniedYou are entitled to be accompanied at formal grievance meetings by a companion, who may bea Staff Representativeor another FCA employee of your choice who may be a friend orcolleague. Please note that the fellow employee should not be a member of the HR Division.Alternatively, you may be accompanied by a Trade Union official. The meeting may bepostponed, at your request, for up to five working days if your chosen companion is notavailable to attend on the date set for the meeting.You must make all reasonable efforts to attend any grievance meeting. If you fail to do so, wemay proceed with the meeting in your absence.TimelinesThe timelines provided in this procedure are intended as a guideline. Although in many caseswe would expect the process to operate more quickly, there may be occasions where it mayprove impossible to meet the timelines. This may include, for example, occasions where keyparticipants in the process are not available due to holiday. Similarly, the timescales may needto be extended if the matter is especially complex and requires detailed investigation. In thesecircumstances you will be told the date by which you can expect a response and every effortwill be made to complete the process as quickly as is possible.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Grievance Procedure as at April 2009.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The procedure is not contractual and is subject to change at our discretion of the FCA – anychanges will be published on the intranet.FCA Employee Handbook 2013 170

Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employmentFCA Employee Handbook 2013 171

Performance Management ProcedureThe FCA expects our employees to work to the standards required of their job. However, fromtime to time we may have concerns that despite satisfactory conduct, an employee’sperformance does not meet the standards required of their job.Concerns about performance might arise for a number of reasons, including:lack of ability, skill or experience;change in job;reorganisation or redefinition of role; orpersonal/family difficulties.Where an employee’s work standards do not meet the standards required for the job, we willwork with them to help them deliver and sustain work to the standards we require within areasonable period of time.The purpose of this procedure is to ensure a consistent and fair approach is adopted when anemployee is unable to meet the standards required in their job for reasons other thanmisconduct.PrinciplesWhat you can expect from the FCAYou can expect your line manager to do the following:Make you aware of the standards of performance required for your job.Talk to you about any shortfalls in performance as early as possible and listen to what youhave to say.Agree with you the support you need to meet the standards required.Provide reasonable assistance and support to help you meet thestandards required.Give you a reasonable amount of time to make the necessary improvements.Monitor your progress and discuss performance improvements or continued shortfalls withyou.Make you aware of the consequences of not meeting the standards.What the FCA expects of youWe expect you to do the following:Undertake your work to the standards required of your job.Talk to your manager if you are unclear about the standards expected of you.Let your line manager know at an early stage if you are struggling to perform according tothe standards required of your job – they will then be able to assess the help you need.FCA Employee Handbook 2013 172

Apply any training, coaching or other support provided to help you in your job and ask ifyou need additional help.Take personal responsibility for undertaking your job to a satisfactory standard.Let your manager know if there are any external / personal factors which may affect yourperformance e.g. family issues.Performance Management ProcedureThe FCA’s formal Performance Management Procedure has three stages preceded by aninformal stage.Informal stageYour line manager should talk to you as soon as they have any concerns about yourperformance. Any concerns should initially be discussed informally as part of the regularperformance management discussions that take place between you and your line manager.Open and honest discussions about improving performance should take place, which includethe identification and provision of ongoing support and help to improve performance to thestandards required. Support will be tailored to the individual case and may include additionaltraining, mentoring and coaching.We expect your line manager to agree objectives with you, agree the actions required toimprove your performance, set a review period and monitor and give you feedback on yourprogress. We expect you to take responsibility for getting your performance to the standardrequired, asking your line manager for help as required.We would hope that any underperformance can be addressed at this informal stageof the process. However, if underperformance continues, you do not improve enough over areasonable period of time, or your line manager thinks the problems are serious enough, andthen the matter will escalate to the formal stage of the Performance Management Procedure.Formal stageThe FCA’s formal Performance Management Procedure has three stages. In most situations theprocedure will move from one stage to the next. There may, however, be occasions where thiswill not be the case and the process may start at any stage, including the third (and final)performance review meeting.First performance review meeting – You will be invited to a first performance reviewmeeting if your line manager considers your level of performance to have shown insufficientimprovement while being informally addressed, or the level of your performance has hadserious consequences.You will be told why the meeting is necessary and will be entitled to state your case. Your linemanager will chair the meeting and will make the decision regarding further action.If appropriate, you will be given a first written warning. This will explain the nature of theshortfall in performance, the improvement required (including the timescales) plus details ofany training, development or other support that will be made available to help you achieve therequired standard of performance. The first written warning will also explain that failure tomake satisfactory progress within the specified review period may lead to further action beingtaken in line with this Performance Management Procedure, including your possible dismissalfrom the FCA.FCA Employee Handbook 2013 173

You will receive a copy of the first written warning, which will also be placed on your personalfile. The warning will be disregarded for this Procedure’s purposes and removed from your fileafter six months, providing you achieve and sustain a satisfactory level of performance. Inexceptional cases, the warning period may be longer than six months. While this warning is inplace, you are required to disclose the matter as part of the internal recruitment process,should you decide to apply for an advertised role.You will have the right of appeal against any decision that is made.Second performance review meeting – You will be invited to a second performance reviewmeeting if your line manager considers your level of performance to have shown insufficientimprovement by the end of the first formal review period, or the level of your performance isconsidered to have significantly serious consequences.You will be told why the meeting is necessary and will be entitled to state your case. Your linemanager will chair the meeting and will make the decision regarding further action.If appropriate, you will be given a final written warning that explains the nature of theshortfall in performance, the improvement required (including the timescales) and details ofany training, development or other support that will be made available to help you achieve therequired standard of performance. The final written warning will also explain that failure tomake satisfactory progress within the specified review period may lead to further action beingtaken in line with this Performance Management Procedure, including your possible dismissalfrom the FCA.You will receive a copy of the final written warning, which will also be placed on your personalfile. The warning will be disregarded for this Procedure’s purposes and removed from your fileafter 12 months, providing you achieve and sustain a satisfactory level of performance. Inexceptional cases, the warning period may be longer than 12 months. While this warning is inplace, you are required to disclose the matter as part of the internal recruitment process,should you decide to apply for an advertised role.You will have the right of appeal against any decision that is made.Third performance review / dismissal meeting - You will be invited to a third performancereview / dismissal meeting if your line manager considers that your level of performance hasfailed to reach the required standards, or your level of performance is considered irredeemablewithin a reasonable period, or your level of underperformance has a serious impact on theFCA.The meeting will follow the process for a dismissal meeting as outlined in the DismissalProcedure. You will be told why the meeting is necessary and will be entitled to state yourcase, having been presented with the evidence to support the issue of poor performance. Thedecision to dismiss will be taken by your Director/ Head of Department as appropriate andfollowing a review of the evidence. A member of the HR division will be present at the hearing.You will have the right of appeal against any decision that is made (See appeals sectionbelow):FCA Employee Handbook 2013 174

StagesTaken byFormalactionDuration ofwarningFirst review meeting – initiated when level ofperformance is deemed to have adverse impact, orthere is insufficient improvement following beinginformally addressed.LineManagerFirst writtenwarningSix monthsSecond review meeting – initiated when there hasbeen insufficient improvement following first reviewor sufficiently serious.LineManagerFinal writtenwarning12 monthsThird review meeting – initiated when level ofperformance has sufficiently serious consequences toFCA and if insufficient improvement after secondreview.LineManagerand/orSeniorManagerDismissalMeetingN/ARight to be accompaniedYou are entitled to be accompanied at formal performance improvement meetings by acompanion, who may be a Staff Representative or another FCA employee of your choice whomay be a friend or colleague. Please note that the fellow employee should not be a member ofthe HR Division. Alternatively, you may be accompanied by a Trade Union official. The meetingmay be postponed, at your request, for up to five working days if your chosen companion isnot available to attend on the date set for the meeting.Performance improvement meetingsPreparing for the meetingIf you are not performing to the required standards, your line manager will invite you to attenda performance improvement meeting. Prior to the meeting, the FCA will provide you with:at least three working days’ advance notice of the meeting;details of the purpose of the meeting and confirmation that it will be held under the FCA’sPerformance Management Procedure;written details of the nature of the underperformance and any other documents that willbe discussed at the meeting.If you are unable to attend the meeting and provide a good reason for failing to attend, themeeting will be adjourned to another day. The FCA will give at least three working days’advance notice of the meeting. Unless there are special mitigating circumstances, if you areunable to attend the rearranged meeting, it will take place in your absence. Your companion ortrade union official may attend in such circumstances and will be allowed the opportunity topresent your case. You will also be allowed to make written submissions in such a situation.The meetingThe performance review meeting will normally be conducted by your line manager unless amore senior manager is required. A member of the HR Division may attend in order to take anote of the meeting and provide procedural advice.You will be given a full explanation of where your performance meets the standards the FCArequire and where there is a shortfall in your performance against the standards required. YouFCA Employee Handbook 2013 175

will be entitled to state your case and put forward any explanations and / or mitigating factorsthat are affecting your performance.The relevant manager will explain their decision (and their reasons for it) to you as soon aspossible after the meeting finishes. Your line manager will let you know the support (if any)that is to be provided, or what action (if any) is to be taken. The decision will be confirmed inwriting and you will be notified of your right of appeal under this procedure.SanctionsSanctions relating to underperformance in the formal stage of the procedure will varydepending on the case. We may use one or more of the following sanctions depending on thecircumstances:Transfer to a more suitable job, if one is available.Withholding or deferring the receipt of incentive award payments and/orpay rises.Please review the Salary & Benefits Policy for additional information.The sanctions mentioned above are not exhaustive and the FCA reserve the right to take anyaction we consider appropriate in the circumstances.While any formal warning is in place, you are required to disclose the matter as part of theinternal recruitment process, should you decide to apply for an advertised role.Monitoring progressA monitoring system should be put in place during the review period and a written record willbe kept of any assessment made during the period. You will receive a copy of any writtenrecord. Your manager will talk to you about improvements made and/or continuedunderperformance during the review period, rather than you simply waiting for feedback at theend of the review period.AppealsIf you are given a formal warning or notice of dismissal, you will have the rightof appeal.Appeals may be lodged on a number of grounds, including:new evidence coming to light;the decision being wrong or unreasonable;the inappropriateness of any penalty imposed; andprocess or procedural irregularities.Any appeal against the issue of a first or final written warning, or dismissal must be lodged inwriting with the appropriate manager (see table below) within five working days of beinginformed of the decision that has been made.FCA Employee Handbook 2013 176

Action Taken by Appeal to Appeal heard byFirst writtenwarningLine ManagerManager of person whoissued the warning.Manager of person who issued thewarning.Final writtenwarningLine ManagerManager of person whoissued the warning.Manager of person who issued thewarning.DismissalLine Manager andSenior ManagerHR DirectorTwo people who will be senioremployees of the FCA and notinvolved in the case to date.The FCA will normally hold the appeal meeting within ten working days of receipt of the writtenrequest where possible, and will give at least three working days’ notice of the meeting.The manager hearing the appeal must decide on the basis of representations from both theemployee and the manager, together with any subsequent facts that may have come to light,whether to uphold the decision that has been made.An appeal against dismissal will be heard by two people appointed by the HR Director, who willbe senior FCA employees and who will not have been involved in any action previouslyconducted under this Procedure. A member of the HR Division will also be present to takenotes and give procedural advice when required.The outcome of the appeal meeting and the reasons for the decision will be confirmed inwriting as soon as possible.At the appeal any sanction imposed will be reviewed but cannot be increased.Where an appeal against dismissal fails, the original decision to dismiss will have hadimmediate effect and, if the dismissal is by notice, the period of notice will already havecommenced on the date that the decision was given. If the original decision was to dismiss theemployee immediately without notice, the FCA is under no obligation to pay the employee forany period between the date of the original dismissal and the appeal decision – the originaldate of termination will stand unless the decision to dismiss is overturned on appeal.TimelinesThe timelines provided in this procedure are intended as a guideline. Although in many caseswe would expect the process to operate more quickly, there may be occasions where it mayprove impossible to meet the timelines. This may include, for example, occasions where keyparticipants in the process are not available due to holiday. In these circumstances you will betold the date by which you can expect a response and every effort will be made to completethe process as quickly as is possible.What happens if I am underperforming in my probationary period?Underperformance during the probationary period may indicate a mismatch in the skills of thenew employee and the needs of the role. It is important that everyone is clear on thestandards of performance expected of them, but this is particularly important for newemployees. Line managers must regularly monitor the performance of new employees toidentify and address problems quickly.If during your probationary period your level of performance does not meet the standardsrequired for the job you are doing, your line manager will talk to you in accordance with therequirements of this Procedure.FCA Employee Handbook 2013 177

If during your probationary period your line manager is unhappy with your conduct, this will bemanaged in accordance with the Disciplinary Procedure.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Performance Management Procedure as at April 2009.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The procedure is not contractual and is subject to change at our discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 178

11. Personal ConductYour obligations at the FCAThe FCA has a Code of Conduct because we need to ensure that our work is carried out in anenvironment free from any suggestion of improper influence, in order to protect our reputationof the FCA and employees.Further information on the Code of Conduct can be found on the intranet pages.What you can expect from the FCAThe Code of Conduct team will treat information supplied by staff in an appropriatemanner. It will be kept confidential (unless there is a legal obligation to disclose it) andwill not be misused in any way.The Code of Conduct team will also be happy to support and guide staff in relation to Codeof Conduct matters in order to make compliance as easy as possible.What the FCA expects from youCompliance with the code is compulsory for all staff and breaches may result in disciplinaryaction, including, where appropriate, dismissal. We expect all staff to consider the code as anessential element in our culture.Everyone should be aware of the obligations set out in the code and follow relevant proceduresin respect of conflicts of interests, share dealing, and gifts and hospitality.The policyContractual Information (start)FCA Code of ConductWe are responsible for promoting and setting high standards of conduct, so our conduct bothas an organisation and as individual employees is likely to come under close scrutiny. It istherefore essential that, in common with many other organisations, we have a Code ofConduct. This provides a framework for managing conflicts of interest and related matters. Italso protects employees against any suggestion that regulatory decisions have been influencedby personal interests or that their investment decisions have been influenced by informationmade available in confidence to the FCA.Within this framework, the code has been kept as light and practical as possible. For conflictsof interest and personal dealings in shares, etc., we intend to rely as much as possible on aregime based on disclosure and pre-notification. Inevitably some restriction on dealings inshares and related investments will be required where you are directly involved in the affairs ofthe organisation concerned. There are no restrictions relating to the products and servicesprovided by organisations regulated by the FCA, except a requirement for disclosure in certainlimited circumstances, such as, for example, in the case of disputes where a conflict of interestcould arise.It is the Ethics Officer’s responsibility to deal with matters arising from the code and to monitorthe information disclosed under its provisions. Any enquiries that you may have on thepersonal implications of the Code of Conduct should be raised with the Ethics Officer.Failure to comply with the Code of Conduct, our standards of conduct and/or our securityprovisions may be a disciplinary matter, which may lead to dismissal.FCA Employee Handbook 2013 179

The Code of Conduct is set out in the FCA’s Code of Conduct for employees.Failure to comply with the Code of Conduct and/or the FCA’s standards of conduct or securityprovisions from time to time will be a disciplinary matter which may lead to dismissal.Compliance with the Code is compulsory for all staff and breaches of the Code may result indisciplinary action including, where appropriate, dismissal. We expect all staff to consider theCode as an essential element in the FCA’s culture.Everyone should be aware of the obligations set out in the Code and follow relevant proceduresin respect of conflicts of interests, share dealing, and gifts and hospitality.Money launderingYou have a personal responsibility to report knowledge or suspicion of money laundering. Thisis knowledge or suspicion about a firm or person, formed or obtained in the course of yourwork, which links the financial dealings of that firm or person (or its customers, connectedpersons, etc.) to any criminal conduct or terrorist activities.This is not just an internal requirement. There are Money Laundering Regulations that createthis responsibility and make it a crime not to report. Providing you follow our reportingprocedures, you will comply with the law. The key feature is to report any such knowledge orsuspicion to your line manager for onward reporting to either of our Deputy Money LaunderingReporting Officers. The Deputy Money Laundering Reporting Officers are officially designatedfor disclosing knowledge or suspicion to the Serious Organised Crime Agency (SOCA).Indemnity and notification requirementsThe FCA will indemnify you (its employees and anyone who is seconded to the FCA or isotherwise acting as a member of its employees) against any liability you incur in connectionwith claims or proceedings brought against you in relation to anything done or not done whenworking for the FCA. This applies whether proceedings are brought in the UK or overseas. Theindemnity will cover any liabilities incurred in connection with such claims or proceedings,including any costs reasonably incurred in defending them, whether or not judgment is givenin favour of the employee concerned. If you are seconded or assigned while employed by theFCA, we will, wherever appropriate, as a pre-condition of any secondment, either:expressly confirm in writing that we will continue to indemnify you in line with the termsof this contract throughout the course of the secondment; orensure that the organisation you are seconded or assigned to gives you an equivalentindemnity.The indemnity will not extend to any liability incurred where your acts or omissions are:clearly done or omitted to be done in bad faith; orare clearly outside or inconsistent with the scope of your responsibilities under yourContract of Employment with the FCA.The indemnity is conditional with all of the following requirements. If you fail to complywith them, this could invalidate or otherwise affect the indemnity. The conditions are thatyou should:inform your manager within the FCA and the FCA Company Secretary as soon as youbecome aware of the possibility of a claim against you or the FCA;FCA Employee Handbook 2013 180

avoid any discussion of the matter with the potential claimant, but if this is impossible,keep a written note of the conversation;under no circumstances admit liability for yourself or the FCA;not try to settle or compromise or reduce the potential claim;not seek outside legal advice except with the authority of the FCA General Counsel orCompany Secretary; andinform your management within the FCA and the FCA Company Secretary of any discoveryof suspicion, fraud or dishonesty by a past or present employee of the FCA or anyoneclaiming to act on our behalf.Confidentiality of informationYou must observe absolute confidentiality concerning the affairs of the FCA, other than asrequired to perform your normal duties. This includes all aspects of the FCA’s business,committees, tribunals, panels and working groups, as well as the firms and individuals that weregulate. Information must be kept confidential, even if it is favourable and not adverse to thefirm or individual concerned. Guidance is available from the General Counsel Division (GCD) onthe circumstances in which FCA we and our employees may, in the course of their duties andfor regulatory and other purposes, disclose confidential information. You should seek furtherguidance if you are at all uncertain as to whether confidential information can be disclosed.You should be particularly discreet in casual, social or other contact with journalists, regulatedfirms and individuals and other people operating in the financial markets.Disclosing confidential information without permission may be a criminal offence.The duty to observe confidentiality is ongoing and does not cease after you leavethe FCA.ReferencesYou must not give employment references, whether in the FCA’s name or otherwise, forexisting or ex-employees of the FCA. All requests for employment references should bereferred to HR Transactions. Requests for financial references should be referred to the HRHelpline.Gifts and hospitalityUnder no circumstances will you directly or indirectly offer, pay, request or accept any form ofbribery or improper inducement. For more details, please refer to the Policy on the Acceptanceof Gifts and Hospitality set out in the FCA’s our Code of Conduct for employees.Exclusive employmentWhile employed by the FCA you are not permitted to undertake any additional employment,whether directly or indirectly, except with written approval of the FCA. Agreement will not begiven where a potential conflict of interest exists, i.e. if the role involves any firm, person ororganisation that is or has been regulated, monitored or investigated by the FCA or has appliedfor authorisation.Restrictions on external employment include casual or part-time work in your spare time(whether paid or not) and employment includes directorships, trusteeships, local authoritycouncillorships, or provision of services as consultant or agent.FCA Employee Handbook 2013 181

On joining the FCA, you must disclose any external employment, appointment or businessinterest. You will need to obtain written approval in advance from your Director/Head ofDepartment before continuing with this activity.Intellectual propertyAny intellectual property created or produced during your employment, with the FCA or relatedto work carried out by the FCA, may not be used by you except in the performance of yourduties. Such work will remain the property of the FCA and you may be required to assign theproperty rights to the FCA.Speeches and publicationsAny fees received from speeches, articles, attendances at seminars or similar events, in yourcapacity as an employee, must be surrendered to the FCA. If you are writing or publishing anymaterial connected with your work but not commissioned by the FCA, you should seekapproval from the Head of Press Office and Events in advance. You are reminded that thepublication of confidential information may be considered as gross misconduct and may lead todismissal.Media enquiriesIn order to help the FCA to maintain a consistent line when dealing with press or other mediaenquiries, all press enquiries must be referred to the Press Office (extension 63232).If you receive a media enquiry you should not comment on what is being put to you, butpolitely and firmly refer the journalist to the Press Office. You should also contact the PressOffice yourself to inform them of the enquiry.Only employees in the Press Office and those authorised by the Press Office should speak tothe media.There are no exceptions to this requirement and even those authorised to talk to the press(who have all received formal training on dealing with journalists) need to contact the PressOffice before responding to calls from journalists. This is designed to minimise any risk toindividual employees as well as the FCA.Remember that the press may be present when employees are speaking at externalconferences or events. Don’t say anything you would be embarrassed to see in print,particularly during question and answer sessions.Changes in personal circumstancesWe need to keep accurate records of key information on all employees. It is essential thatchanges such as your home address, telephone number, marital status and who to contact inthe event of an emergency are recorded by you on Chrysalis Employee Self-service.In order to comply with our statutory duties, we need to know of any changes in your personalcircumstances, which affect or could potentially affect your employment with the FCA.You must inform your line manager of changes in your health so that, if necessary, we cancomply with our statutory obligations to make reasonable adjustments to enable you tocontinue working.You must also inform your line manager and the HR Helpline, within a reasonable period oftime, if you are personally affected by, or involved in any of the following circumstances:FCA Employee Handbook 2013 182

1. You are charged with or convicted of any criminal offence, which includes beingdisqualified from driving or receiving a formal police caution. This requirement does notextend to minor traffic offences;2. You are involved in civil litigation in any capacity other than as a witness.3. You are experiencing financial difficulties and/or have: filed for bankruptcy, individualvoluntary arrangements, debt management plans, debt relief orders, or have CountyCourt Judgements made against you.Any of the above information will be treated in strictest confidence, however we reserve theright to inform your Director/Head of Department when it is necessary and reasonable to doso.The FCA has legal obligations to fulfill as both an employer and the financial services regulator.If we become aware, either through one of our checks or you inform us, that you are affectedby any of points 1 to 3 noted above, it may be necessary for us to reassess your suitability forcontinued employment with the FCA. If we have to undertake such an assessment, we willconsider the following:the principles of the Fit and Proper Test for Approved Persons;the level of risk to the FCA’s reputation if you were to remain in your current role and/orfunction;the level of risk to the FCA’s reputation if you were to undertake a different role at theFCA; andwhether you disclosed your situation voluntarily.The outcome of this assessment may result in:moving you to another role within the FCA where the level of risk is removed or reduced;disciplinary action against you, the sanctions of which may be to dismiss you (see theDisciplinary Procedure).We fully appreciate that being involved in any of the above situations can be a very worryingtime. If you feel you would like to discuss your situation confidentially, the FCA’s freecounselling advice service is available 24/7. Alternatively contact the HR Helpline.ConductWe are an important, high profile organisation. Your conduct contributes significantly to ourreputation. For this reason, we require you to be pleasant, polite and considerate to otheremployees and to outside contacts.AppearanceYou are required to be neat and tidy in appearance at all times while at work. You must wearappropriate business dress, which is fit for purpose, while at work and outside working hourswhen representing the FCA or attending FCA or other functions on behalf of the FCA. While youhave discretion to decide what appropriate dress is, line managers retain responsibility for theinterpretation and application of this.Contractual Information (end)Employment of relatives or other individuals with whom there is aclose relationshipFCA Employee Handbook 2013 183

We do not prevent your relatives or other individuals with whom you have a close relationshipfrom being employed by the FCA. It is your responsibility as an employee to ensure that theFCA is informed of any relationship at the time of making the application. The FCA will makeevery effort to ensure that no conflict of interest arises. We do not normally permit employeeswho have a close relationship to work together in the same team or report to the same linemanager.Completion of weekly timecardsIn order to measure corporate, divisional and departmental performance, all employees whomeet the ‘Headcount’ definition (i.e. all employees, secondees, contractors and long-termagency temps) are required to complete weekly timecards on a timely and accurate basis.Data recorded should reflect actual hours worked by activity performed and be submitted asper the agreed deadline.If any employee is exempted from completing timecards, local management will adviseaccordingly.Personal mailPersonal mail should not be sent to the FCA’s addresses. We will not be responsible for its safedelivery and it may be opened for security purposes. You may not use the FCA’s stationary orpostage for personal correspondence, but may send personal mail from the office provided thatyou pay for postage by affixing the appropriate stamp(s).Ordering goods and servicesAll orders for goods and services must be made with a purchase order. Suppliers should beasked to quote the purchase order number on invoices and submit them directly to accountspayable. They should be created for the total value, including VAT, of the goods and services.Where the total value is over £25,000 they should be created with the Procurement Division.Purchase orders can be created by authorised individuals using iProcurement.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Personal Conduct Policy as at January 2012.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The policy is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyContractual information in this policy forms part of your contract of employment.FCA Employee Handbook 2013 184

Prospective Parliamentary Candidates PolicySummary of the PolicySeeking approvalIf you intend seeking selection as a Prospective Parliamentary Candidate (PPC), you shouldfirst approach your line manager to seek written approval. Your line manager will inform theHR Helpline and the Ethics Officer.You should also inform your line manager as soon as you are selected as a PPC.Sensitive issuesFollowing your selection, you should discuss with your manager whether there are any FCArelatedissues on which, in your capacity as a PPC, it would either be inappropriate for you tocomment or you would be expected to follow an agreed line. The FCA reserves the right tomove you to other work if, in our opinion, there is a conflict of interest between your FCA andyour PPC work.Time off for PPC commitmentsYou will not be granted additional time off for constituency work between elections. Time offfor constituency commitments should be taken from your normal holiday allowance.You will be granted up to 20 days additional unpaid leave to fight an election campaign inwhich you are a candidate for election (general, European Parliament or by-election). You mustrecord this absence as Unpaid Leave via Employee Self-service on Chrysalis.If you are electedIf you are elected, you will be expected to resign with effect from the day following theannouncement of the result.If you are not electedIf you are not elected, you will be expected to return to work at the end of your agreed leaveof absence.Partners and family members of PPCsIf you are the partner or a family member of a PPC, any time off required to help fight anelection campaign should be taken from your annual leave allowance.Contractual Information (start)Political activities and public debateIf you intend to seek selection as a PPC or Local Authority Councillor you should try to give atleast three months’ notice to your manager. Where we consider there to be a conflict ofinterest between your current role and your proposed political involvement, which may beprejudicial to our integrity, we reserve the right to move you to other work.Special rules will apply if you are seeking selection as a PPC. You should discuss yourintentions with your Director/Head of Department, the HR Helpline and the CommunicationsDivision.Contractual Information (end)Who is covered by this policy?This policy covers all employees.FCA Employee Handbook 2013 185

Ownership, updates and query managementThis is the FCA’s Prospective Parliamentary Candidate Policy as at April 2009.The policy is owned by the HR Division and has been developed in conjunction with the FCA’sStaff Consultative Committee.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 186

12. Security of FCA Assets, Information andDataClear Desk PolicyThe Clear Desk Policy serves as a basic reminder to staff to secure sensitive or valuablematerial, whilst providing guidance on procedures that should be followed.The procedural guidance contained within this document enhances/supports other FCA policiescovering records management, staff confidentiality agreements, employee informationsecurity, Data Protection and Emergency Planning procedures.The Clear Desk Policy will complement, not replace, other existing policies. The FCA Clear DeskPolicy relates to all material, whether personal or corporate, that is held within the premises ofthe Financial Conduct Authority. The policy allocates responsibilities and provides proceduraladvice to ensure that the aim is achieved.It also identifies courses of action in relation to non-compliance and suspected securitybreaches. The policy covers all premises in which the FCA operates.AimThe aim of the Clear Desk Policy is to ensure that FCA records and property are afforded theappropriate level of physical protection in direct proportion to the impact on the businessactivities and reputation.ObjectivesThe objectives of the Clear Desk Policy are as follows:To protect sensitive information from public disclosure - Not only information which hasbeen annotated with a FCA security classification, or is covered under the auspices of theData Protection Act 1998, but also information that could potentially embarrass or damagethe reputation of the FCA if publicly disclosed.To prevent inappropriate access to sensitive information.To protect business critical information from damage or loss as a result of fire, smoke,water and explosion. To protect information which, although not sensitive is essential to normal functionality –Information such as reference material that can be replaced easily but with a time delay.To protect information that would be difficult or could not be replaced.To ensure that material is stored in a way that enhances Business Continuity Planning inrelation to post incident start up, clearance, salvage and reclamation.To prevent loss or theft of personal property and FCA portable property such as laptopsand mobile phones.To quantify the consequences of loss of information or FCA property resulting throughnegligence of a member of staff or, as a result of deliberate acts of attempted theft of anymaterial held within the confines of FCA.ResponsibilitiesFCA Employee Handbook 2013 187

Executive - The Director of Finance & Operations has executive responsibility for the ClearDesk Policy.Compliance – Directors, Heads of Departments and Managers are responsible forcommunicating standards and ensuring staff compliance within their areas ofresponsibility.Compliance Audit – Corporate Protection & Resilience are responsible for monitoring andreporting non-compliance to HR.Disciplinary process – line managers are responsible for ensuring that any breaches of thispolicy are investigated and appropriate action is taken. The HR Division maintains thedisciplinary policy and process, providing support to line managers where necessary.Monitoring and escalation – the Operational Security Group (OSG) is responsible formonitoring management information relating to clear desk breaches, and taking action toaddress trends and individual cases which fall outside of their risk appetite.Desk Top StorageMaterial that is permanently stored on desk tops should be documents that are easilyreplaceable, contain non sensitive information that is already within the public domain, willhave little or no impact if damaged or lost and could be disposed of as rubbish post anyincident involving smoke, fire, flood or explosion.The volume of this material should be kept to a minimum by ensuring that there is noexcessive duplication of reference materials by colleagues working in adjacent desk spaces andfulfilling similar roles. This will ensure that post incident action will involve a small clearanceoperation rather than salvage and reclamation which would extend the time for return tobusiness as usual.Minimising desk top storage will also reduce the likelihood of classified/sensitive materialbecoming mixed up with the reference material and inadvertently being left insecure.During working hours and after close of business, all classified/sensitive documents andmaterials should not be left unattended in a way that makes it easy for unauthorised personsto read or take copies.All meeting rooms must be cleared of confidential information and valuable assets whenleaving. These items must not be left insecure at any time.While staff are temporarily away from their desk, their computer screens should be locked withthe CTRL/ALT/DELETE keys.Clear Desk Guidelines for a RightSpace EnvironmentWe want to ensure that all FCA premises are maintained in a clean and tidy state. Theresponsibility for making this happen rests with all of us. The purpose of having tidy desks isnot simply to give the cleaners a chance to do their job, but also:To protect confidentiality and reduce our exposure to riskTo reflect the fact that most desks are shared resourcesTo improve the security and safety of your personal belongingsTo help make the office a more pleasant working environmentFCA Employee Handbook 2013 188

Here is what you should do to help keep the office effective -Remove all belongings, files etc. from your desk once your desk booking ends.Tidy your desk and the area around your desk (floor, cupboard tops etc.) every day.Leave desks as you find them. Please don’t remove cables, keyboards, mice.If you have booked a desk for consecutive days, you may leave your non-valuablebelongings on the desk overnight, though you should store files and paperwork in therelevant storage cupboards. You are responsible for ensuring that documents, equipmentand other material are properly protected in accordance with the FCA Security, RecordsManagement, Employee Information Security and Clear Desk policies.Staff who have been allocated releasable desks still need to keep the desk tidy so thatothers can use it comfortably.When these desks are not being used they must be cleared and made available for use onthe Desk Booking system.The basic principle that we ask you to keep in mind is to leave desks and meeting roomsand other areas of the floor as you would wish to find them.ProceduresDuring working hours:Every effort should be made to ensure that staff with similar roles, who share the samereferencing documents and work in close proximity to one another share their referencingdocuments and materials, rather than duplicating them for individual use.Access to sensitive documents should be restricted to those who require the information tocarry out their normal work.All classified or sensitive working papers and files are to be put away when the member ofstaff leaves his/her work area, unless a colleague with appropriate access rights who islocated within the same team area is going to remain in situ for the duration of theabsence.Sensitive material or post is not to be left on the desk of a colleague who is away fromhis/her desk.Sensitive material should not be left unattended on photocopiers or faxes.At the close of business each day:Individuals are to ensure that they remove all working papers from desk tops.All sensitive documents and materials (as defined in the Records Management andEmployee Information Security policies) are to be locked away in the cabinets provided.Crates provided during office moves are not to be used for continued document storage.At the earliest opportunity they should be unpacked and returned to Ops Services -Property & Workplace.if you are away on the first day of the office move and your crate will remain unopeneduntil you return to the office, then your laptop should either: be taken home with you andkept securely until your return to the office, handed over to a colleague for manager forsafekeeping, handed in temporarily at the Security Control Room.FCA Employee Handbook 2013 189

Post should not be left at floor mail distribution points after the final collection of the day(4.30pm).Staff are to ensure that their lockers and cabinets are locked and that all of the relevantkeys have been placed in the key safe before leaving work.Individuals should confirm that all material for which they are responsible have beenremoved from the printer and fax and properly securedThe last person leaving the area should visually check the area to ensure that valuableproperty, sensitive documents and portable electronic equipment have not been leftunsecured. They should also check that cabinets are locked and keys placed in the keypress, and that the press itself is locked.Security of FCA and Personal PropertyFCA property, such as laptops, palm tops and mobile phones in the possession of staff are tobe secured after close of business or taken home when appropriate. For key lockable cabinets,the key is to be secured in a key safe and not taken home. Staff are also responsible forensuring the security of personal items of monetary or sentimental value - care should betaken to ensure these items are adequately protected.ProceduresAt the close of business, laptops must be locked inside a laptop safe, personal locker ortaken home. Palm pilots, Blackberries and mobile phones if not taken home are to bestored as above.Personal items of small monetary or sentimental value should be stored in individuallockers. It is also advisable to lock away expensive clothing and trainers after close ofbusiness.Personal lockersPersonal lockers are allocated to staff. You must not use the default code 2244 as yourpersonal code. You must immediately reset to a personal code known only by you.You are responsible for reporting all locker related problems once they occur to: FacilitiesHelpdesk on ext. 69696 for 25TNC; Security Reception for 1 Canada Square on ext. 66066.You are responsible for securing all FCA assets and papers in your possession. Under nocircumstances should you leave information or your laptop in an unlocked locker. Therefore,please seek alternative accommodation until your locker is repaired.Document disposalAll FCA classified documents including those labelled “FCA Restricted” must also be disposed ofin a confidential waste bin. This also applies to any document containing business informationwhich we wish to remain private such as budgets and invoices information and anythingcontaining personal information about individuals (e.g. names and addresses, NI numbers,dates of birth).Please see guidance on destruction of paper records for disposing of government material.Key securityKeys to cabinets containing working, sensitive or classified information should be locked in akey safe when not in use. Under no circumstances should keys be ‘hidden’ on a desk where arudimentary search would identify them.FCA Employee Handbook 2013 190

ProceduresThe combination to the key safe should be changed regularly (assistance should be soughtfrom Facilities Helpdesk on extension 69696).A record of the combination should be held in a sealed envelope in a locker of a memberof the team. The date of the combination change and the location of the key safe shouldbe annotated on the envelope, together with the name of the person responsible for thekey box. If the key safe combination is forgotten and the ‘owner’ of the locker is away, theline manager may ask Security to open the locker containing the sealed combination.Other written records of the combination should not be made.Compliance auditsRegular audits are carried out by the Corporate Protection & Resilience Team to ascertain thestandard of compliance with this policy.ProceduresThe audit will be conducted without prior notification after close of business.The reason for the audit and the results will be detailed in a report to the appropriateDivisional Director.The audit may be supported by a briefing, to all staff involved, on the outcome of theaudit and remedial/future measures that are required.Subsequent audits will be conducted to establish whether compliance has improved.Breaches of the Clear Desk Policy may result in disciplinary proceedings.Additionally, Security personnel undertake nightly clear desk sweeps and potentialbreaches are reported to the appropriate line manager for investigation (as describedwithin the ‘Responsibilities’ section of the policy).Loss/Compromise investigationsSuspected loss or compromise of FCA material is to be reported to the following:Line management.Corporate Protection & Resilience Department.The IS Security Manager, in the case of loss or compromise of information contained oncomputer systems including laptops and palm tops.The Deputy Security Officer in the case of loss or compromise of government classifiedmaterial.The Data Protection Officer in the case of information protected under the auspices of theData Protection Act.Suspected loss of personal property should be reported to Security on extension 63838.ProceduresFCA materialsFCA Employee Handbook 2013 191

The initial information surrounding the suspected loss/compromise is to be reported toLine Management, IS Helpdesk and Corporate Security who should notify the appropriatepersons detailed above in order that further investigation can be carried out.An investigation will be initiated to establish the likely cause of the loss/compromise. Ifthe incident is found to be as a result of deliberate non-compliance with this policy, or ifan individual has been implicated in the theft, the individual concerned may be subject totransfer from post, disciplinary action or criminal proceedings. The action to be taken willbe decided in consultation with Line Management, HR and Corporate Protection &Resilience Department.Personal propertyA Security Officer will take the initial information surrounding the loss. Security will alsospeak to the individual and take further information as deemed necessary and provideremedial advice.Further investigation into a loss of FCA property/personal items will take place at thediscretion of Corporate Protection & Resilience Department.Ownership, updates and query managementThis is the FCA’s Clear Desk Policy as at October 2013.This policy is owned by Corporate Protection & Resilience.Any questions on the application of the policy should be directed to the HR Helpline onextension 67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 192

Employee Information Security ManualThe two most important assets we have are our people, and the information they use. Secureuse of information and of information systems is essential if the interests of the FCA, the firmsit regulates, consumers and the Government are to be met.There are risks associated with careless or excessive use of information and systems. Thispolicy sets out the principles, policies and procedures that the FCA has determined arerequired to protect its information and information systems from such risks.Where something is not specifically covered in this policy, employees are encouraged to seekclarification from their line manager.PrinciplesWhat you can expect from the FCAWe provide information systems and services to our employees and place a high priorityon the security of these systems and services. We therefore operate a number of securitycontrols which protect these systems and services, and the information they contain, fromattack. Wherever possible, these controls will operate in an automated way that is resilientagainst user errors.Information systems are primarily provided for business use. We do allow reasonablepersonal use of the facilities provided, so long as it is not excessive, does not interferewith individuals meeting their agreed business objectives and incurs minimal cost for theFCA.We may monitor use of our information systems, and individuals should bear this in mindwhen using FCA systems to process sensitive personal information (see the section onMonitoring).We own all information stored and processed within our systems. As part of the Freedomof Information Act or for other reasons, we may be obliged to disclose information aboutthe work of our employees or aspects of their employment conditions (e.g. the divisionsthat managers work in and regulatory work that they have been involved in). Employeesare encouraged to speak to their line manager if they have any particular concerns aboutpotential disclosures. We will approach individuals who have registered their concerns insuch cases and, wherever possible, seek their agreement.We will take reasonable steps to ensure that employees understand their responsibilitiesand obligations under this policy and, where necessary, have the training necessary to beable to comply.We will investigate all suspected breaches of this policy quickly and consistently, and willtreat everyone fairly.What the FCA expects of youYou must follow this policy, and other policies and guidance provided to you, at all times.We expect you to understand your responsibilities and obligations under this and otherpolicies, and to contribute to the security of the FCA.If you need (or are asked) to do something which requires you to breach this policy, thenyou must seek guidance from your line manager (or a more senior manager) before takingany further action.FCA Employee Handbook 2013 193

We expects you to take all reasonable steps to protect, at all times, sensitive information,and valuable IT equipment (such as laptops, and other mobile devices and BlackBerryhandhelds) from loss or theft.You must report any actual or suspected breaches of security to either your line manager,or FCA Security Control, as soon as you can. Loss or theft of IT equipment must bereported to the IS Service Desk as soon as you can.We expect you to use the information and information systems and services to which youhave been given access in a reasonable and acceptable way at all times.We may monitor use of our information systems – by making use of them, you agree tothis taking place and accept that any private information you process on or transmit viaour systems may also be monitored.Line Managers’ responsibilitiesDirectors, HoDs and Managers are responsible for ensuring that:Staff are aware of and comply with the security policies and standards that apply to theirduties;Any additional local security arrangements necessary for the employees, offices,information or systems under their management are developed, maintained,communicated and enforced;Staff have the training necessary to be able to comply with the security policies andstandards that apply to their duties;Performance targets include, where appropriate, specific objectives that enhance thesecurity of the FCA;All staff are aware of the consequences of breaching the policy;Concerns about possible excessive or inappropriate use of information, or informationsystems and services, are raised informally with the employee in the first instance;Potential policy breaches are investigated promptly, and dealt with under the FCA’sDisciplinary Procedure where policies or standards have been violated without priorauthorisation.Monitoring of FCA Information SystemsGeneralWe may monitor use of any of our information systems as required by law, or for otherregulatory or business purposes. Information gathered through monitoring may be used, butis not limited to, measurement and enforcement of the requirements detailed within thisManual and other FCA policies. Breaches of the requirements defined in this Manual, will bedealt with in line with the FCA’s Disciplinary Procedure.EmailMonitoring of emails is conducted in adherence to the guidelines set out by the InformationCommissioner’s Office.All email sent from FCA accounts to external (including Internet) accounts are automaticallymonitored for sensitive business information. Where there is reasonable justification to do so,your internal email may be monitored.FCA Employee Handbook 2013 194

You are advised that emails may be reviewed by a member of HR of the Technology SecurityTeam. You should bear this in mind if sending or receiving sensitive personal information.To maintain the integrity of the SCC relationship, we will endeavour to avoid accessing thecontent of emails containing SCC in the title.WebTechnical controls are in place to prevent access to appropriate websites. However, you arereminded that all web access is logged and may be reviewed where there is reasonablejustification to do so.TelephonesMost telephone calls are not recorded. However, some extensions are logged for regulatoryand quality assurance purposes or where there is reasonable justification to do so, so youshould bear this in mind when making or receiving personal calls.Information Classification, Marking and HandlingThe two most important assets we have are our people, and the information they use. Secureuse of information is therefore essential if the interests of the organisation, the firms weregulate, consumers and the Government are to be met.There are risks associated with the careless or excessive use of information. This proceduredescribes how information should be classified, and then a security ‘marking’ applied, in orderthat it will be handled securely by recipients.Where something is not specifically covered by this procedure, employees are encouraged toseek clarification from their line manager.FCA ClassificationsWe have determined that most of the information we hold falls into one of the categoriesindicated in the following table:ClassificationUnrestrictedDescriptionUnauthorised disclosure of this type of information would have little or no impacton the organisation, the Government, firms or others. This includes allinformation which is already in the public domain and FCA information which isnot sensitive (e.g. team meeting agendas).FCA RestrictedControlledDistributionUnauthorised disclosure of this type of information could cause embarrassment tothe FCA, a firm or others, but would not cause long-term damage. ‘FCARestricted’ information is open to all staff and to other contracted parties.However, depending on the type of information, it may be appropriate to restrictaccess or apply other controls. For example this may be appropriate for personalor staff sensitive information. 1Unauthorised disclosure of this type of information could cause severe and longtermdamage to the organisation or to a firm, would represent a breach of ourobligations under FSMA, or could cause a movement in market prices (and mighttherefore be used for ‘insider trading’). Access to information in this category willbe restricted to those having a demonstrable ‘need to know’, and it is expectedthat in most cases this will be a small group of people (for each instance of thistype of information).Marking procedure1 Please contact your local Records Management champion to help decide if any additional controls need be appliedFCA Employee Handbook 2013 195

If you create new information, you must classify and add the corresponding security marking.This includes adapting existing documents and templates, whether they have been previouslymarked or not. The marking must be clear in the header, footer or email content. ForControlled Distribution information, it may be appropriate to include a distribution list.If you receive information from another organisation and are responsible for its onwarddistribution, you must classify and add the corresponding FCA security marking. If it is notpossible or practical to mark the information, the information must be handled as if it wasclassified.If you receive information that does have a marking but the requirements for handling it havenot been communicated by the external party, then contact the sender to determine theirhandling requirements and then apply the appropriate FCA marking.If you receive information bearing a UK Government Protective Marking, then you must handleit in accordance with the Policy on Government Protectively Marked (Classified) Information.If you receive information bearing a Bank of England Marking, you must handle it inaccordance with the ‘Other classification and marking schemes’ document.Individual Divisions may require you to apply additional markings or more stringent controls 2 .Some Divisions may require you to use ‘handling descriptors’ that more specifically classifyinformation, for example “Controlled Distribution – Enforcement”.Data protectionIf any of the information you handle contains personal data (e.g. name, salary,performance/sickness data etc.) you must also consider the additional requirements detailed inthe FCA’s Data Protection policy. Please refer to the ‘Data Protection Guide to SendingPersonal Data to External Organisations’.Classification, marking and control summaryThe table below summarises the markings and provides examples of information that may fallinto each classification. The table also sets out the core controls are required when handlinginformation. Further detail on controls related to handling, distribution and disposal can befound in following sections.2 Please contact your local Records Management champion to help decide if any additional controls need be applied.FCA Employee Handbook 2013 196

Classification Description Examples Core ControlsFCA ControlledDistributionUnauthoriseddisclosure couldresult in severe orlong term damagefor the FCA or afirm, or represents abreach of legislativeobligations.Firm information thatcould impact share pricesor marketsInformation intended fora named list ofindividualsOperational details ofenforcement actionsExternal email - Encryptionrequired (exceptions may benecessary) 3External post - SecurecourierInternal post - DoubleenvelopeNetwork storage - Restrictedaccess folderUSB / removable media -Encryption requiredPersonal IT equipment /email - Not permittedPaper storage - LockedcabinetPaper disposal - secureshredderFCA RestrictedUnauthoriseddisclosure couldcauseembarrassment tothe FCA, a firm orothers, but wouldnot cause long-termdamage.FCA information intendedfor an internal audienceonlyPersonal information,including salary,performance data 4Pre-publication policyworkPersonal IT equipment /email - Professionaljudgement / local guidanceNetwork storage -Professional judgement /local guidanceUSB / removable media -Encryption requiredMarket monitoringtransaction reportsPaper storage - Clear DeskPolicyCommercial FCAinformationPaper disposal - ConfidentialbinUnrestrictedUnauthoriseddisclosure wouldresult in little or nodamage orembarrassment forthe FCA or a firm.Published papersPaper storage - Clear DeskPolicyDetailed handling controlsThis section provides more detail on the controls that are expected to be applied whenhandling information. This is split into controls on: storage, distribution, and disposal.3 For information and advice on encryption, contact IS Security Enquiries.4 For information and advice on encryption, contact IS Security Enquiries.FCA Employee Handbook 2013 197

StorageEach storage method must be appropriate to the information being stored. We must ensurethat information we store internally is only accessible by those entitled to access it. We mustalso ensure that information stored on portable devices and media is protected. This helpsensure that if a device or media item is lost we can be confident that an unauthorised personcannot read it.Paper - you must at all times comply with the FCA’s Clear Desk Policy.ControlledDistributionInformation marked Controlled Distribution must be securely locked away whennot in use. Documents must be locked in a security container or in a locker (i.e.a Right Space locker).If it is necessary to take paper documents home, Controlled Distributioninformation must be stored out of sight (e.g. away from plain view of windows)when not in use, and secured (e.g. a locked cabinet or briefcase).FCA RestrictedIf it is necessary to take paper documents home, FCA Restricted informationmust be stored out of sight (e.g. away from plain view of windows) when not inuse.Depending on the type of information, it may be appropriate to restrict accessto a pre-specified distribution list, for example personal or staff sensitiveinformation. 5UnrestrictedThere are no requirements for secure storage. However, the clear desk policyapplies.Network storageControlledDistributionInformation marked Controlled Distribution must be placed in folders whichrestrict access to those on an approved distribution list who have a provenneed-to-know.For example, if the classification is ”Controlled Distribution – Enforcement”, thedocument must be placed in a folder to which all those involved withenforcement casework can access.FCARestrictedUnrestrictedInformation marked FCA Restricted may be placed in unrestricted folders.However, depending on the type of information, it may be appropriate torestrict access to a distribution list, for example personal or staff sensitiveinformation. 6Information marked Unrestricted can be placed in unrestricted folders on thenetwork.5 Please contact your local Records Management champion to help decide if any additional controls need be applied.6 Please contact your local Records Management champion to help decide if any additional controls need be applied.FCA Employee Handbook 2013 198

Removable media - removable media includes USB memory sticks, external hard disks, SDcards, CDs and DVDs.ControlledDistributionInformation marked Controlled Distribution must only be copied to removablemedia if the files are encrypted. This is designed to ensure that if the media arelost or stolen, the information on them cannot be read.Staff who have a business need to write to removable media must useapproved encrypted devices or encryption software. 7FCA RestrictedAs for Controlled Distribution, above.UnrestrictedInformation marked Unrestricted can be copied unencrypted to removablemedia.Personal equipment- the table provides guidance when working on non-FCA equipment suchas personal PCs or mobile phones outside the office.ControlledDistributionFCA RestrictedInformation marked Controlled Distribution must not be worked on or stored onnon-FCA equipment such as home PCs.Information marked FCA Restricted can be worked on or stored on non-FCAequipment such as home PCs, only when essential. FCA laptops are provided asthe primary means of working at home and in the office.However, depending on the type of information, it may not be appropriate touse personal equipment, for example personal or staff sensitive information. 8UnrestrictedInformation marked Unrestricted can be worked on or stored on non-FCAequipment such as home PCs.DistributionThe primary ways we distribute information are by email, post, courier and fax. Each of theseis potentially open to misdirection or interception and appropriate controls must be in place.7 For information and advice on encryption, contact IS Security Enquiries.8 Please contact your local Records Management champion to help decide if any additional controls need be applied.FCA Employee Handbook 2013 199

Email - the text within the body of the email (but not the subject line) must indicate themarking to the recipient(s).ControlledDistributionEmail sent by the FCA to external email addresses must be encrypted. Whereencryption 9 is not possible, it may be possible to obscure sensitive information,for example using code names or abbreviations.Wherever possible, emails containing ‘Controlled Distribution’ information mustnot be sent from a BlackBerry (or personal mobile devices, where staff have beenauthorised to access FCA email and calendar functionality) to external emailaddresses (as they cannot be encrypted).Controlled Distribution information must not be sent to personal email addresses– whether encrypted or not. (The term ‘personal email address’ refers toaccounts such as ‘home’ email accounts used by FCA employees on a non-FCAPC. It does not refer to business email accounts - e.g. a web-mail account usedby an IFA).FCA RestrictedUnrestrictedWhen the information is classified FCA Restricted, it is important to check thatthe intended recipients are within the group of people authorised to view thematerial.There are no requirements for emailing unrestricted information either internallyor externally.FaxControlledDistributionDocuments should not be sent by fax unless there is a business requirement todo so and no secure alternative (such as scanning and emailing the scanneddocument) exists. 10If there is no alternative, the sender must ensure that the correct fax number isbeing used and that the recipient is present to take immediate possession of thefax upon receipt.FCA RestrictedAs for Controlled Distribution, above.UnrestrictedThere are no requirements for faxing unrestricted information either internally orexternally.9 For information and advice on encryption, contact IS Security Enquiries.10 This requirement does not apply to the automated transmission of faxes using the RightFax service.FCA Employee Handbook 2013 200

Posting DocumentsControlledDistributionExternal postWhen sending Controlled Distribution information externally, the sender mustinstruct the post room to send the information by secure courier.Internal postWhen sending Controlled Distribution information internally, this must be handdelivered or double-enveloped.FCA RestrictedExternal postDepending on the type of information, it may be appropriate to use courierservices when sending information externally, for example personal or staffsensitive information. 11Internal postDepending on the type of information, it may be appropriate to use doubleenvelopes or hand delivery.UnrestrictedThere are no requirements for posting Unrestricted information either internallyor externally. Standard mail services may be used.Posting Removable MediaRemovable media includes USB memory sticks, external hard disks, SD cards, CDs andDVDs.ControlledDistributionWhen sending Controlled Distribution information externally, the media must beencrypted as described in the Storage section. The password should betransmitted by other means such as email or telephone.If media cannot be encrypted, then the secure courier service must be used.FCA RestrictedUnrestrictedAs for Controlled Distribution, above.There are no requirements for posting Unrestricted information stored onremovable media either internally or externally. Standard mail services may beused.DisposalWe must ensure that sensitive information is disposed of securely.PaperControlledDistributionIf the document contains Controlled Distribution information, then it must bedisposed of using the shredders provided on each floor.FCA RestrictedUnrestrictedFCA Restricted information must be disposed of in the confidential waste binsprovided on each floor.There are no disposal requirements for Unrestricted information.Removable media - includes USB memory sticks, external hard disks, SD cards, CDs andDVDs.11 Please contact your local Records Management champion to help decide if any additional controls need be applied.FCA Employee Handbook 2013 201

ControlledDistributionCDs and DVDsCDs and DVDs containing Controlled Distribution information must be disposedof in the confidential media disposal bin located in Security Control room on theground floor of 25TNC.Other mediaEncrypted data can be deleted normally. Unencrypted data requires securedeletion. 12FCA RestrictedAs for Controlled Distribution, above.UnrestrictedThere are no disposal requirements for Unrestricted information.Personal equipment -the table provides guidance when working on non-FCA equipmentsuch as personal PCs or mobile phones outside the office.ControlledDistributionFCA RestrictedUnrestrictedInformation marked Controlled Distribution must not be worked on or stored onnon-FCA equipment such as home PCs.Staff must delete the information from the non-FCA PCs when no longerrequired.There are no disposal requirements for Unrestricted information.12 For information and advice on secure deletion, contact IS Security Enquiries.FCA Employee Handbook 2013 202

Use of FCA information servicesUse of emailEmails that you create, send, receive and store are owned by and may be monitored bythe FCA.You must not send emails which contain inappropriate content; this includes but is notlimited to, obscene, racist, sexist, defamatory or discriminatory material, which causeharassment or offence, or which contain malicious gossip or advocates any illegal activity.If you do send such material then this will be treated as misconduct and dealt with underthe FCA’s Disciplinary Procedure.If you unwittingly receive material which is inappropriate you should report this to yourline manager and delete the material. If you know the sender personally you shouldcontact them and ask them not to send further inappropriate material.If our anti-virus software alerts you that you have received an infected email, you mustcontact the IS Service Desk immediately. You must not delete, forward or otherwiseprocess the email until the Service Desk has advised you that it is safe to do so.You must not “auto-forward” your FCA emails to an external email address.Access to personal Internet email accounts (such as Hotmail) is not permitted(as the FCA is not able to monitor such access).We accept that from time to time it may be necessary to send a personal email from yourFCA account. You must ensure that the email does not contain sensitive information, andthat its content cannot be confused with an official FCA business communication.From time to time we may monitor the use of email and this may be required by law insome circumstances. To maintain the integrity of the SCC relationship, if any emails aremonitored which contain ‘SCC’ in the title, every effort will be made to avoid accessing thecontent.Use of the InternetInternet facilities are provided for business purposes – however, you are allowed to makereasonable personal use of these facilities.You must not deliberately access web sites containing material of an offensive,pornographic or violent nature, or gambling, gaming or betting sites. If you deliberatelyaccess such sites then this will be treated as misconduct and dealt with under the FCA’sDisciplinary Procedure.You must not download software (including screensavers) as these may contain embeddedviruses or other malicious code which could damage FCA systems.FCA Employee Handbook 2013 203

Use of Social MediaSocial media covers platforms such as Facebook, Twitter, LinkedIn, all blogs, all forums andcomments to online articles either on a publications website or other sites as they develop.Social media profiles that do not identify you as a FCA employee or discuss the work of theFCA, or is purely for personal use will generally fall outside this policy. Contact your manageror the Communications Division if you are unsure.You must contact the Director’s Office in the Communications division if you want to use socialmedia on behalf of the FCA. You may, on occasion, be asked to represent the FCA in a socialmedia environment and this will be discussed with you and your Manager, led by theCommunications Division.You can make reasonable use of social media sites in a personal capacity – but you areresponsible for the content you publish in your name and it must not relate to your work or thework of the FCA.Contact the press office and your manager if you are contacted by the media about a commentor post you made on social media that relates to the FCA. Do not engage in a furtherdiscussion with a journalist, direct them to the Press Office.Contact your manager if you are offered payment to produce a blog or other article for a thirdparty which could lead to a conflict of interest.You must not reveal confidential information about the FCA and its work, or information thatrelates to a regulated firm.You must not engage in public debate on any issue that relates to the FCA without priorauthorisation from the press office and your manager.You must not criticise the FCA or your colleagues, even if you do not state that you work forthe FCA.In your social profiles, you must make it clear that you are expressing a personal view byincluding the following text: “The views and opinions expressed on this site are mine alone anddo not necessarily reflect the views of my employer”. You should be aware of your duty as anemployee to act in good faith and in the best interests of your employer under English law.You must not bring the FCA into disrepute through the information, comments and othermaterial you disclose. For example, avoid posting abusive, derogatory or offensive comments,and carefully consider whether it is appropriate to express your political views.Excluding LinkedIn, which can be used in a professional capacity, you must not include ‘FCA’ inany form in your social media profile name or title (unless given permission byCommunications).ComputersYou must lock your computer screen (press Ctrl+Alt+Del keys or the Windows key+L andthen select Lock Computer) when you leave your computer unattended, and log off yourcomputer before you leave for the day.If you are not taking it with you, you must ensure that your laptop is locked away beforeyou leave for the day.You must not attempt to access a computer unless you have been authorised to do so.Gaining unauthorised access to a computer by any means, or removing or tampering withFCA Employee Handbook 2013 204

any IT equipment, software or electronically-held information, will be treated asmisconduct and dealt with under the FCA’s Disciplinary Procedure.You must not tell someone else (including IS Service Desk personnel) your computer loginpassword without a clear business reason and authorisationto do so.You must not write down your computer login passwordYou must not enter your computer login password if someone else can see the keys youare typing.If you think your password has been compromised, then you must change it immediately.You must not try to load software onto a FCA desktop, laptop of other systems,or modify existing software (other than to change user-configurable options andpreferences). You must contact the IS Service Desk if you have a legitimate business needfor a copy of software listed in the IS Service Catalogue (which can be found on My FCAHub). If you need access to software not listed in the IS Service Catalogue, then you willneed to contact IS Relationship Management to discuss raising a Work Request for this.You must not make illegal copies of software, as you will be personally liable for this andmay also put the FCA at risk of enforcement action.You must not connect any unauthorised devices to the FCA’s network.Mobile DevicesThis includes Blackberrys, mobile phones and where authorised, personal devices used toaccess FCA email and calendars.You must take all reasonable steps to ensure that you do not lose your mobile device orallow it to be stolen. Loss or theft of your mobile device, including any personal devicethat contains FCA data, must be reported immediately to the IS Service Desk on 020 70663636.If you use your mobile device in a public area (e.g. on the tube or train) then you musttake reasonable steps to ensure that others cannot read the emails you are reading orwriting.You must try to avoid leaving your mobile device unattended while outside of the office. Ifthis is unavoidable, then you must either lock it manually or turn it off before you leave it.You must not tell anyone else your mobile device password. If you believe that someoneknows your password, you must change it immediately.You must not try to load software onto your FCA mobile device, or modify existingsoftware (other than to change user-configurable options and preferences).You must follow the requirements in the ‘Use of email’ and ‘Use of theInternet’ sections of this policy when using your mobile device for email orInternet access respectively.When using other features of your mobile device (including the camera) you mustnot create, import, send or store material which is obscene, defamatory or discriminatory,which could cause harassment or offence, or which contains malicious gossip or otherinappropriate material.FCA Employee Handbook 2013 205

You must take reasonable precautions to avoid being overheard if you use your mobiledevice or mobile phone to discuss FCA business while outside the office. Discussions onmobile phones relating to “Controlled Distribution” information must not take place inpublic.It a criminal offence to drive while using a hand-held mobile telephone (or mobile device).We insist that you do not use either while driving on FCA business.Office TelephonesIf you need to discuss sensitive information over the telephone, then this must take placein a way that the information is unlikely to be overheard by someone outside the “needto-know”group.If you are phoned and then asked to discuss sensitive information, you must make sure ofthe caller’s identity and validity of their request. If you are unsure, then ask the caller fortheir number, hang up, confirm the authenticity of the caller and their request with yourline manager or a colleague, and then call them back.Telephones are provided for business purposes but you may make occasional andreasonable personal use of them providing it does not interfere with the performance ofyour duties and incurs minimal cost for the FCA. You should ensure that any personalusage is not excessive, in terms of either number or length of calls made. A call loggingsystem is in operation and charges maybe made for excessive private calls.You must not use your FCA phone to make a personal call overseas.In certain departments of the FCA telephone calls are recorded or otherwise interceptedfor business related reasons. If this is a requirement in the department in which you work,you will be informed by your line manager and you should ensure that you follow yourdepartment’s rules on recording/interception.If there is no recorded message to indicate to internal or external callers that calls madefrom or to your telephone will be recorded, you must inform them that the call will berecorded at the outset of the call. The only exception will be where in accordance with theproper exercise of FCA’s investigatory powers you may conduct covert interception.Guidance on this is issued locally.Voice MailYou must take care to ensure that the messages you record on the voice mail system do notgive away sensitive information.Fax machinesYou must not send sensitive documents by fax unless there is a business requirement to do soand no secure alternative (such as scanning and emailing the scanned document) exists.If you do have to send sensitive information by fax, you must ensure that the correct faxnumber is being used and that the recipient is present to take immediate possession of the faxupon receipt. (Note that this requirement does not apply to the automated transmission offaxes using the RightFax solution.)You may use the FCA’s fax machines to send urgent personal messages, providing such use isoccasional and reasonable, and that personal messages are not capableof being confused with FCA business communications. Please note that all fax calls are logged.FCA Employee Handbook 2013 206

Printers, scanners and photocopiersIf you print, scan or photocopy a sensitive document, you must ensure that you remove theoriginal from the machine once the operation is completed. If the original or copy becomesjammed in the machine, then you must ensure that any sensitive material is removed.If you need to print a sensitive document, then you should use either a local printer or the‘secure print’ facility on a shared printer. If this is not possible or practical, then you mustensure that you pick up the print out immediately.You must not scan or photocopy material where this would be a breach of copyright or otherlegislation.In the OfficeYou must at all times comply with the FCA’s Clear Desk Policy.If you participate in a meeting, you must ensure that any sensitive documents (includingflipcharts) are removed from the meeting room, and that any sensitive information iswiped from the whiteboard.Sensitive information must not be displayed on walls overnight – if it is required to bedisplayed during the working day then it must be removed and secured at the end of eachday.If you are working late in the office, then please check your local print area for anydocuments that have not been collected and place these in the Confidential Waste.Security tokens (VPN)You must take reasonable precautions to avoid losing any security tokens youare given, or exposing them to theft. If they are lost or stolen then this must be reportedimmediately to the IS Service Desk on 020 7066 3636 or Security Control on 020 7066 3838.Secure remote workingIf you are working outside the office with sensitive information then you must ensure thatyou are not overlooked, and that you do not lose the information you have in your custodyor allow it to be stolen.You must be especially cautious when discussing any sensitive information in publicplaces, and ensure you are not overheard.FCA laptops are encrypted, but they are expensive to replace, so you must take allreasonable precautions to avoid losing your laptop or having it stolen. If a laptop is lost orstolen then this must be reported immediately to the IS Service Desk on 020 7066 3636or Security Control on 020 7066 3838.Monitoring and ReviewTechnology and the law change regularly and this policy will be updated periodically to reflectany changes. Employees will be informed when any fundamental changes are made but shouldbe aware that it is everyone’s responsibility to read the latest version of FCA policies.Who is covered by this policy?This policy covers all FCA employees, including permanent staff, temporary staff includingcontractors and agency temps. This policy also covers any third party employees while theyare working on FCA business. If a breach involves a third party, appropriate sanctions will betaken against that third party.FCA Employee Handbook 2013 207

Ownership, updates and query managementThis is the FCA’s Information Security Policy as at February 2013.The policy is owned by the IS Technology Security Manager and has been developed inconsultation with the FCA’s Staff Consultative Committee.The procedure is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to the HR Helpline onextension 67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 208

14. WellbeingSmoking PolicyPrinciplesWhat you can expect from the FCAThis policy has been developed in line with the requirements of the Health Act 2006 to protectthe health of all employees, contractors, consultants and visitors to the FCA’s premises fromexposure to second-hand smoke.We recognise that people have the right to work in a smoke-free environment under the newSmoke-free Regulations and we will take all reasonable steps to achieve this.We recognise that second-hand smoke adversely affects the health of people. We are notconcerned with whether anyone smokes, but where they smoke and the effect this has on ourstaff and visitors.The aim of the policy is to:protect the health of anyone who comes to work on our behalf on our premises (includingemployees, secondees, workers, contractors, and consultants);protect the health of visitors to the FCA;inform people of their responsibilities in relation to this policy; andpromote an improved working environment in conjunction with theRightspace Programme.What the FCA expects from youEmployees should:ensure they comply with this policy and do not smoke on the premises (including thesteps at the front and back of the building) or in any other areas on the Canary Wharfestate where a ‘no smoking’ sign is displayed;ensure their visitors to the FCA are made aware of the smoking policy onarrival; andreport any employee, contractor, etc., who commits serious or persistent breaches of thispolicy to their manager or the HR Division.ScopeIt is against the law to smoke in public spaces and workplaces that are enclosed orsubstantially enclosed, i.e. with a ceiling or roof that (except for doors, windows andpassageways) are wholly enclosed or are enclosed but for an opening that is less than half theworkplace perimeter.Smoking will not be permitted by any person in any part of the FCA’s premises, including theentrances, lifts, corridors, stairwells, toilets, or in any FCA vehicles, e.g. those used by thechauffeurs. The jurisdiction of 25 The North Colonnade (25TNC) ends at the bottom of thesteps at both the main and back entrances of the building. The law covers all substances that aFCA Employee Handbook 2013 209

person can smoke, including manufactured cigarettes, hand-rolled cigarettes, pipes, cigars,herbal cigarettes and water pipes.Internal procedure for non-complianceSmoking on our premises is considered to be an act of misconduct. Any employee who doesnot comply with this policy may be subject to disciplinary action in accordance with ourDisciplinary Procedure.A record will be made and referred to the HR Helpline if any employee:fails to comply with reasonable requests from security to extinguish smoking material ormove to a dedicated smoking zone on the Canary Wharf estate; orcommits serious or persistent breaches of this policy.If a visitor does not comply with the smoking policy they should be asked to extinguish thesmoking material. If they continue to smoke they should be referred to the appropriate host orto a member of the security if the host is not present.BreaksSmokers are allowed to have reasonable breaks provided these do not prevent them fromsatisfactorily carrying out their responsibilities and work duties, and there is no significant lossin productivity.If you are in the Flexitime Scheme you should log off at the terminal before takinga smoking break and log on again before returning to your desk, in line with the Flexitimepolicy.Roles and responsibilitiesSenior management of the FCA will be ultimately responsible for making sure that the law iscomplied with on our premises, while the HR Division will be responsible for maintaining thispolicy and ensuring its consistent approach across the FCA. However, we all have an obligationto meet the new regulations.Corporate Security will:seek to ensure that all employees, secondees, workers, contractors, consultants andvisitors to the FCA’s premises comply with this policy;ensure anyone they find smoking on the premises (which includes the steps at the frontand back of the building) is asked to extinguish their cigarette and reminded of our policy;andreport any employee who commits serious or persistent breaches of this policy, or whofails to comply with reasonable requests from security, to the HR Helpline.Property and Workplace will:ensure ‘no smoking’ signs are displayed around the building and inchauffeurs’ vehicles;seek to ensure that all employees, contractors, consultants and visitors to the FCA’spremises comply with this policy; andreport any employee who commits serious or persistent breaches of this policy,or who fails to comply with reasonable requests, to the HR Helpline.FCA Employee Handbook 2013 210

Managers will:seek to ensure that their employees, contractors, consultants and visitors to our premises(which includes the steps at the front and back of the building) comply with this policy;andensure that any serious or persistent breaches of the policy by a member of their teamwill be dealt with under the Disciplinary Procedure.CWM and LBTH will:ensure that the smoke-free regulations are implemented and enforced throughout theCanary Wharf estate;work with employers on the Canary Wharf estate to ensure the regulations areimplemented and enforced.Who is covered by this policy?This policy applies to all employees, secondees, workers, contractors, consultants and visitorsto our premises.Ownership, updates and query managementThis is the FCA’s Smoking Policy as at May 2011.The policy is owned by the HR Division, Occupational Health, Health and Safety, Property andWorkplace, Corporate Security, and has been developed in conjunction with the StaffConsultative Committee.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 211

Stress Wellbeing PolicyThe FCA is committed to identifying and tackling the causes of work-related stress and mentalhealth issues and to provide appropriate support and consideration to staff suffering from suchproblems on a confidential basis where appropriate.This commitment extends to maintaining a working environment that protects thepsychological as well as physical health of all FCA employees, wherever possible. Psychologicalhealth problems can include stressors from an employee’s personal life and the pressures anddemands these entail which are often unavoidable. It can also include the often unavoidablepressure of working life, with each job bringing its own pressures and demands. A controllablelevel of pressure can be healthy and benefit performance, but excessive and sustained levelsof stress may be damaging to your health.The FCA recognises that stress is a health and safety issue. The Health and Safety Executivedefine stress as “the adverse reaction people have to excessive pressure or other types ofdemands placed on them”. This makes an important distinction between pressure, which canbe a positive state if managed correctly, and stress which can be detrimental to health.PrinciplesWhat you can expect from the FCAIdentify workplace stressors (as far as reasonably practicable) and conductrisk assessments to eliminate stress or control the risks. These should bereviewed regularly.Provide training for all people managers in good management practices.Provide confidential free counselling for staff affected by either work or external stressthrough an EAP (Employee Assistance Programme).Provide adequate resources to enable managers to implement the FCA’s agreed stressmanagement strategy.Promote a culture of open communication, participation and encouragement.Provide a workplace free from harassment, bullying and victimisation.Address violence, aggression and other forms of inappropriate behaviour throughdisciplinary action.Maintain a performance management framework, which includes objective setting and anappraisal process, to ensure the suitability of workloads and the development ofappropriate skills, supported by a Performance Management Procedure.Provide employees with clear roles and responsibilities; andProvide adequate training to ensure employees are able to carry out their roles.What the FCA expects from youUltimately, you have primary responsibility for your own health and wellbeing and to ensureyou take reasonable care of yourself.Comply with any safety instructions and directions issued by the FCA.Let your manager know about any aspect of work or your working environment which maybe affecting your health.FCA Employee Handbook 2013 212

Be familiar with the Stress and Wellbeing policy and act in accordance with its aim andobjectives.Plan and organise your work to meet personal and organisational objectives.Speak to your manager if you experience or are aware of a situation that may lead to astress problem.Co-operate with support, advice and guidance you may be offered by the FCA, includingtraining and attending meetings with Occupational Health when required.Responsibilities: (as far as reasonable practicable)People Managers:Ensure each member of staff is trained to perform their duties.Monitor workloads to ensure that staff are not put under excessive pressure.Monitor working hours to ensure staff members are not working excessively.Ensure good communication between team members.Promote a culture of zero tolerance for bullying and harassment.Human Resources:Ensure all people managers have adequate guidance on the Stress and Wellbeing Policyand provide any necessary training.Give support to people managers on any training needs identified withintheir team.Monitor the effectiveness of measures to address stress and identify trends by collatingand reporting sickness absence statistics.Occupational Health Adviser:See any staff member who the line manager has identified as possibly suffering fromstress, or stress related problems, and provide advice and support to both them andmanagement.Provide specialist advice on stress management.Refer any employee to the EAP provider where appropriate.Identify trends and make recommendations from referrals and analysis of stress audits;report findings to the HR Division.HR Helpline, Senior HR Business Partners, HR Frontline Consultants and H&S Reps:Will provide support and advice to managers and employees.Will seek additional guidance from appropriately qualified and experienced colleagues andprofessionals where necessary e.g. Occupational Health Adviser and Physician.Will escalate issues appropriately where any individual or department-wide wellbeing risksare identified e.g. HR Helpline to HR Frontline Consultant.Support & Assistance:FCA Employee Handbook 2013 213

EAP (Employee Assistance Programme) – Free and confidential advice line and counsellingservice which is available 24 hours per day.Occupational Health Adviser – A referral will only be suggested after a discussion betweenyou and your line manager. Discussions with the OHA are confidential, although a reportwill be provided to your line manager and HR Frontline Consultant to ascertain your fitnessfor work and to identify any changes to your working arrangements that might help you toreturn to or remain in work. If appropriate, the OHA may refer you on to the OccupationalHealth Physician.Your own GP.Any employee who considers that they may be suffering from stress or a mental health issuefor reasons connected with their working conditions, workload or working relationships withcolleagues, should approach their line manager in the first instance.Any people manager noting symptoms of stress and/or a mental health problem in anemployee who reports to them or who is approached by an employee complaining of a workrelated stress or mental health issue should promptly refer the employee to OccupationalHealth and advise their HR Frontline Consultant.Who is covered by this policy?This policy covers all employees/workers at all levels and grades, including ManagingDirectors, Directors, Heads of Departments, Managers, Technical Specialists, Associates,Administrators and Secretaries who may be home workers, part time and fixed termemployees, and agency temps, secondees and contractors (collectively referred to as staff inthis policy).Third parties who have access to the FCA premises (such as consultants, contractors,customers and visitors) are also required to comply with this policy.Ownership, updates and query managementThis is the FCA’s Stress and Wellbeing Policy as at January 2012.The policy is owned by the HR Division and has been developed in conjunction with the Health& Safety Adviser.Any questions on the application of the policy should be directed to the HR Helpline onextension 67070.Contractual status of this policyThis policy does not form part of your contract of employment and is subject to change at thediscretion of the FCA. Any changes will be published on the FCA’s intranet, My FCA Hub.FCA Employee Handbook 2013 214

Substance Abuse PolicyOur employees are our most valuable resource and their health and safety is of the utmostimportance. Drug and alcohol misuse has the potential to damage the health and wellbeing ofour employees and threaten the success of our business.What you can expect from the FCAWe will manage any substance abuse or related concern in line with the following keyprinciples.We wish to ensure your welfare and to safeguard the organisation’s efficiency andreputation.We consider alcoholism and drug dependency as illnesses, which except where absolutelynecessary, should be treated medically rather than within the Disciplinary Procedure.Encourage those employees with an alcohol or drugs problem to seek appropriate help asearly as possible.Ensure that you are aware of the risks associated with the abuse of alcoholand drugs.Help managers to identify a drinking or drugs problem at an early stage.Ensure that other employees are not put at risk or adversely affected by an employee’salcohol consumption or drug use.Ensure that the FCA’s efficiency and reputation is not undermined by an employee’salcohol or drug-influenced behaviour.What the FCA expects from youWe expect employees to do as follows:Seek assistance in line with this policy.Advise the Occupational Health Advisor if they are taking prescribed drugs.Adhere to any rehabilitation program.Accept and co-operate with any referral to a medical advisor.Acceptable and unacceptable useThe definition of ‘substance’ includes:alcohol;illicit, prescription or over-the-counter drugs; andany other substance that may impair an employee’s performance orconduct at work.Alcohol is available to you at particular times in specified dining areas on FCA premises, but isnot normally permitted elsewhere. However, there are occasions when alcoholic drinks may bepermitted, at the discretion of line managers.FCA Employee Handbook 2013 215

If you drink off-duty, it should be to an extent that it does not impair work performance orconduct. Any employee whose work performance or conduct is adversely affected by alcoholconsumption or drugs may be subject to action under our Disciplinary Procedure.Helping employeesWe encourage you to seek help if you have an alcohol or drugs-related problem and to seekadvice on the assistance available.There are often signs that might suggest that someone has a problem. These include a declinein work performance; a poor attendance record; unreliability; unexplained injuries; andchanges in behaviour, such as irritability and lack of concentration. The FCA accept that raisingthe subject may put you in a difficult or embarrassing position, but believe that you shouldencourage a colleague to seek assistance.If a line manager observes that someone has a dependence problem, or information comes tolight through the disciplinary procedure or by other means, the manager should encouragethem to seek help. If managers require assistance, they should speak to the HR Helpline.Counselling serviceIf you are experiencing problems with alcohol or drug dependency, you can seek help throughthe confidential Employee Assistance Programme.Disciplinary actionAlthough the FCA’s intention is to help employees with substance abuse problems, we maytake disciplinary action, up to and including dismissal (as appropriate), for the followingserious offences:Possessing, using or selling illicit drugs on FCA our premises, the premises of a regulatedorganisation and also at any other event when representing the FCA;Working under the influence of alcohol, such as to impair performanceor conduct.Drinking alcohol on FCA our premises, other than when authorisedby management.Being under the influence of alcohol, drugs or other prescribed substances that impairperformance or conduct while at work (including attending any event, whether social orotherwise at FCA our premises or elsewhere).If an employee refuses to accept referral to specialist help, e.g. an Occupational HealthAdvisor, we may initiate disciplinary action.If an employee fails to complete a rehabilitation Programme, we may initiate disciplinaryaction.If you relapse into dependency after the course of treatment has been completed, you will begiven the opportunity to take further treatment. If this help is refused, or your performance oraction is unacceptable, disciplinary action may be taken.RehabilitationLine managers are responsible for monitoring the performance and health of employees whohave undergone successful treatment for an alcohol or drug problem. If you need further helpon keeping alcohol and drugs out of your life, you should speak in confidence to your linemanager or the HR Helpline, or seek further help from the Employee Assistance Programme.FCA Employee Handbook 2013 216

Employees on a rehabilitation Programme will usually be subject to normal sickness/absencerules.Who is covered by this policy?This policy applies to all employees.Ownership, updates and query managementThis is the FCA’s Substance Abuse Policy as at April 2009.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The policy is not contractual and is subject to change at our discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 217

15. Working PatternsFlexible Working PolicyParents of children up to and including the age of 16, or of disabled children under the age of18, have the right to apply to work flexibly. From 6th April 2007, the flexible workingregulations 2006 came into force and extended the right to carers of certain adults.Employees not covered by this policy may still request to work flexibly and the process forconsidering that request will be broadly similar. However, in this instance, the line manager’sdecision will be final and there will be no right to appeal, other than through FCA’s GrievanceProcedure. The application process is the same for all employees (see below).There is no automatic right to work flexibly, as there will always be circumstances when theFCA is unable to accommodate a desired work pattern. However, this policy aims to facilitatediscussion and to encourage both parties to find a mutually agreeable solution. Each requestwill be considered seriously and assessed on itsown merits.EligibilityIn order to make a request you must:Be the parent, adoptive parent, guardian, special guardian or foster parent of a child up toand including the age of sixteen (or under the age of 18 if the childis disabled).Have caring responsibilities for an adult aged 18 or over who is the employee’s spouse,civil partner or live-in partner, a relative, or someone living at the same address as theemployee.Have worked continuously for FCA for 26 weeks at the date the applicationis made.Make the application no later than 2 weeks before your child’s 17th (or 18th) birthday.Have or expect to have responsibility for your child’s upbringing.Be making the application to enable you to care for your child or dependent.Not have made another application to work flexibly during the past 12 months.ConsiderationsIn considering a request for flexible working, FCA will take the following factors into account:Will FCA’s business be affected by not having someone in post during standard workinghours?Can all the necessary work be done in the hours/days requested?Is there another job of similar level that the worker could do flexibly?What benefits would the company get from this arrangement?What would the effect be on the morale and commitment of other staff?FCA Employee Handbook 2013 218

What are the potential cost implications to the Company?Have other requests to work flexibly been made in the area and how werethey treated?Due to the continuing work pressures and operational stretch at this time, no requests forcompressed hours will be approved. This decision will be reviewed annually against businessneeds at that time and any changes communicated to all staff. You should work with your linemanager to identify other suitable flexible working arrangements. See the Employee Guidancepages for further information.Flexible working arrangements will not necessarily transfer from one job to another. Differentroles may not be suitable to being carried out on the same flexible working arrangement asyour current role, so this will be reassessed at the time.Making a requestYou will be required to make a request by completing the e-form on My FCA Hub, or in writingon a hard copy if you are applying during your maternity leave and are therefore unable toaccess the e-form.An agreed request will normally be subject to a six month trial period during which thearrangement will be subject to continuous review. Failure to deliver will result in a return to anormal working pattern.At the end of the trial period, if it is agreed by both parties that the new arrangements areworking, the application will be accepted. An accepted application will mean a permanentchange to Terms and Conditions, unless agreed otherwise.Within 28 days of receipt of your application a meeting may be arranged between you, yourline manager and a Frontline Consultant. This meeting will provide an opportunity to discussyour request in depth and to explore how best it might be accommodated. It will also providean opportunity to consider other alternative arrangements should there be problemsaccommodating your desired work pattern. Should you wish, you may bring a colleague withyou to this meeting.Within 14 days of the meeting, we will confirm in writing whether or not your request has beenagreed. If it has, a start date will be agreed with you and you will be issued with revised Termsand Conditions. If the application cannot be accepted you will be provided with clear businessgrounds as to why not. If we have been unable to reach a decision at this point you will benotified accordingly.AppealsIf you feel that the reason for refusing your request is unjustified, you may appeal in writing.This must be done within 14 days of the notification of the refusal. The appeal should state themain reasons why you consider the decision to be unjustified. The appeal should be submittedto the HR Director.The appeal will be heard by two people who will be senior employees of the FCAone of whom will normally be the Director of your division. They will not have been involved inthe meeting previously conducted. A member of the HR Division will also be present to takenotes and, where appropriate, give procedural guidance. The appeal will normally be heldwithin 10 working days of receiving your written reasons for appeal.You will normally be given at least 3 working days’ notice of the hearing. The outcome of theappeal will be communicated to you in writing as soon as possible after the appeal has beenheld.FCA Employee Handbook 2013 219

Right to be accompaniedYou may be accompanied at formal flexible working meetings by a fellow employee of yourchoice, who may be a friend, colleague or Staff Representative. Please note that the fellowemployee should not be a member of the HR Division.Who is covered by this procedure?This procedure covers all employees.Ownership, updates and query managementThis is the FCA’s Flexible Working Policy as at May 2011.This policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 220

Flexitime PolicyWe operate a flexitime scheme for certain Administrator/Secretarial employees. Employeeseligible to participate in the flexitime scheme (as indicated in your Personal Statement) mustcomply with the rules of the scheme.Flexitime scheme rulesThe Rules of the Scheme are detailed below. These rules are subject to work requirements.Limitations may be made at the discretion of your line manager.Each team/section should be adequately manned at all times between 9.00 amand 5.00 pm.The accounting period will be a calendar month. Calculations are made on the basis of aseven-hour day.Working hours may commence at any time between 7.00 am and 10.00 am and end atany time between 4.00 pm and 8.00 pm. These hours are known as the ‘flexitime band’.On a normal working day, you should arrive at the office no later than 10.00 am andshould not leave before 4.00 pm. The hours between 10.00 am and 4.00 pm are known as‘core time’.The lunch interval should be of at least 30 minutes duration and may be taken at any timebetween 12.00 noon and 2.30 pm.Each time you enter or leave the building, you must personally log in or out by swipingyour passcard through the flexi terminal. In no circumstances may you log in or out onbehalf of another member of staff. Both actions will be treated as gross misconduct forboth you and the other person concerned. You should log out and back in when you areaway from your desk for absences such as smoking breaks.Excess hours registered at the end of the accounting period up to a maximum of ten hoursmay be carried forward to the next accounting period. Excess hours will not rank forovertime payment nor affect holiday, pension or any other entitlement.A maximum of ten debit hours may be carried forward at the end of an accounting period.The maximum debit hours permitted at any time during a period is fourteen hours. If youare in a debit situation any authorised overtime worked will offset this balance andpayment will not be made.Credit hours may be taken off either during the ‘flexitime band’; or in each accountingperiod of a calendar month as two half days or one whole day absence from the office.However, no more than twelve half or six whole ‘flexiday’ absences are permitted between1 June and 31 May.If you are part time, the total days that you are entitled to take will be pro-rated inproportion to your part time hours.Proposed absence for whole or half ‘flexidays’ is subject to cancellation by management inorder to ensure adequate staffing.Should you leave the FCA’s employment you must ensure that your hours are not in debit.Any remaining deficit of hours will be deducted from your final salary.Additional ‘flexidays’ may be granted for those working towards examinations.FCA Employee Handbook 2013 221

Loss of working time due to travelling difficulties such as late trains, traffic hold-ups andother such hazards will not be credited.Treatment and general examination by opticians, doctors, dentists, etc. will not normallybe credited.Time lost through urgent unplanned medical treatment will be credited subject to theauthorisation of your line manager.Authorised holiday will be credited at seven hours per day. Authorised half day holiday will be credited at 3 hours 30 minutes. AM half day holiday -you should arrive for work no later than 2 pm. PM half day holiday - you should not leavethe office earlier than 12pm.Authorised sickness absence will be credited at seven hours per day.If you are required by the FCA to be away from your normal place of work, you will becredited for the hours spent as follows:external meetings to which you travel directly from home will be credited with a starttime of 9.00 am;on leaving the office for business appointments and not returning, credit will be givento 5.00 pm;the maximum credit for a business lunch will be two hours;a full day’s absence on business will be credited as seven hours; andadjustment in respect of such absences will need to be authorised by yourline manager.Flexitime scheme method of operationArrival Lunch DepartureYou should log inwhen you are ready tocommence work.You should log out, take aminimum of 30 minutes lunchbreak and log backin again.You should log out when you havefinished work. Failure to log out willautomatically cut back to the last timethat you logged in.You should log out if you take any breaks during the day when you will not be undertakingwork, e.g. smoking breaks.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Flexitime Policy as at January 2012.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The procedure is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.FCA Employee Handbook 2013 222

Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 223

Homeworking PolicyThe FCA recognises that homeworking can be beneficial to both employees and theorganisation.To work effectively, homeworking arrangements have to meet the business needs of the FCA,ensuring that the needs of both internal and external stakeholders will not suffer.Whilst not all jobs are suitable for homeworking, requests made by those who are legallyentitled to request flexible working, or others where considered appropriate by the FCA, will beconsidered on their own merits. This scheme is not intended to create any contractual rightsfor employees over and above the statutory flexible working regime.PrinciplesLine managers will have overall responsibility for considering homeworking requests andassessing whether the role and other factors make such an arrangement suitable andappropriate.Employees will have responsibility for ensuring they have a suitable environmentat home in which they can focus on work. Employees must be able to work freefrom disruption, e.g. by having adequate care arrangements in place for dependants.Homeworking must not put additional burden on office based colleagues, i.e. not lead to anoutput from the employee concerned which is reduced in either quality or quantity.Employees are required to comply with all FCA policies and procedures (e.g. those relating torecords management, clear desk and the security of information) whether working at home orat their office base.Homeworking will be permitted usually only to a maximum of 3 days per week or up to amaximum of 60 percent working time.The ability to work at home may be affected by the constraints on the availability of the ISsystems that are necessary to enable someone to carry out their work at home.Withdrawal of a homeworking arrangement will be done in consultation with the employee andreasonable notice will be given, where practicable. Homeworking arrangements can bewithdrawn, if in the opinion of the relevant line manager, the effective and efficient operationof the team, department, and/or division is compromised, and/or:the role changes;the ability of the wider FCA to fulfil its objectives is compromised;the performance of a home worker is unsatisfactory; and/orthe benefit is being abused.Homeworking arrangements will not transfer from one job to another, since different roles maynot be equally suitable to being carried out in part remotely.Types of Homeworking ArrangementsThe FCA’s Homeworking Policy makes distinctions between employees working on the followingbasis:FCA Employee Handbook 2013 224

Occasional homeworking – employees work from home on an occasional basis e.g. one ortwo days a month.Regular homeworking - employees work from home on a regular basis e.g. one day perweek.Full-time homeworking - employees have a contractual agreement with the FCA to workfrom home (Full-time homeworking contracts only apply to a small number of FCAemployees and are determined by the nature of the role).Working hoursEmployees’ normal working hours will apply regardless of any homeworking arrangement.It is expected that anyone working at home will work their normal daily pattern unless agreedwith their line manager in advance.ExpensesExpenses incurred as a result of Occasional and Regular Homeworking outside the FCA’s Travel& Expenses Policy will have to be met by employees.Full-time homeworkers should refer to their Personal Statement of Terms & Conditions ofEmployment (and any subsequent variations) for details relating to Motor Insurance andMileage expenses.Health & SafetyThe FCA has a responsibility to ensure as far as it is reasonably practicable the health, safetyand welfare of employees, wherever they work. Employees working at home have the sameduties under the Health and Safety at Work Act 1974 as all other employees. They must takecare of their own health and safety and that of anyone else who might be affected by theiractions and must co-operate with the FCA on all health and safety matters.The FCA is required to undertake a risk assessment of employees’ activities and workingenvironment when working on a full-time or regular basis at home. This will normally beundertaken via self-assessment through completion of the Homeworking application eform.Employees must inform the FCA immediately of any changes or hazards to their workingenvironment or equipment used. Full-time and regular homeworkers will need to be completethe self-assessment process on a yearly basis.Sickness AbsenceAll employees working at home must comply with the FCA’s Sickness Policy and ensure thatthey make personal contact with their line manager, or deputy, within 30 minutes of theirnormal start time if they are sick or unable to work.It will not be appropriate for people to work at home as an alternative to taking sick leave if ill.It is important that people only work at home if they are genuinely fit for work.Security and confidentiality of data and equipmentEmployees are responsible for ensuring the security of FCA property and information,documents and files within their possession and are required to comply with FCA policies andprocedures, including those relating to records management, clear desk and the security ofinformation when working at home.Insurance & related mattersFCA Employee Handbook 2013 225

Equipment: The FCA will pay the insurance cover for all FCA equipment under its currentpolicy which covers “all risks anywhere in the UK”. Employees should ensure that theirbuilding/contents insurance is not invalidated by the use of the home as a place of work, or bythe storage/use of FCA equipment.Buildings and contents insurance: It is the responsibility of homeworkers to provideadequate home buildings and contents insurance. The FCA does not accept liability for damagecaused to the home or its contents.Full-time homeworkers and those working at home on a regular basis should seek advice fromthe relevant agencies with regard to the effect of home working on their mortgage or tenancyagreement, and council tax/business rates.The FCA does not accept any responsibility for an employee who suffers any detriment, loss orlegal action as a result of not obtaining the necessary permissions from their insurer, mortgagelender, landlord or local authority.Tax guidance for mobile devicesPlease read the guidance on My FCA Hub about tax implications of mobile phones,Blackberries, smart phones and iPads.Full-time homeworking (FTHW)Full-time homeworking contracts will be determined by the nature of the role, e.g. when therole requires people to work in specific locations throughout the country, and will not beagreed to on request.Full-time homeworkers (FTHWs) will have a contractual agreement with the FCA to work fromhome, though that agreement is subject to the same right of the FCA to make reasonablechanges to terms and conditions as all its other contracts of employment.ExpensesFTHWs should refer to their Personal Statement of Terms & Conditions of Employment (andany subsequent variations) for details relating to Motor Insurance and Mileage expenses.Reporting ProceduresFTHWs should agree with their line manager a procedure for maintaining regular contact. Thiswill include agreeing when they can be contacted to ensure that work and personal lives arekept separate.Attendance at FCA locationsPeriodic visits to FCA offices will be necessary, e.g. for meetings and training events. Amaximum of two visits per month will be reimbursed, in accordance with the Travel ExpensesPolicy. Employees should agree all travel to FCA offices in advance and obtain priorauthorisation of expenses with their manager. Any travel to FCA offices in addition to the twovisits will not be reimbursed by the FCA.Provision and use of equipmentEquipmentEquipment necessary to enable FTHWs to work at home will be agreed between the FTHW andthe FCA, and the FCA will subsequently supply this equipment. Such equipment shall at alltimes remain the property of the FCA.Tax ReliefFCA Employee Handbook 2013 226

Employees who choose to work from home are not normally entitled to tax reliefon additional outgoings. However, if there is a requirement from the FCA for the employee towork from home, there may be tax relief on a proportion of the costs for heating, lighting,travel expenses and on rent of a room used for business purposes.It is the responsibility of the homeworker to clarify their position with HMRC. Information isavailable on the HMRC.Regular Homeworking (RHW)Regular Homeworking (RHW) applies when employees have an agreement with their linemanager to work from home on a regular basis e.g. one day per week.RHW may be appropriate when:functions of the role can be carried out remotely and without disruption;clear outputs can be achieved and agreed in advance;there is adequate equipment in order for the employee to carry out their work;an employee’s absence will not create problems for others;Consequently, homeworking requests are likely to be rejected if:the arrangement will create an additional cost burden for the FCA;the arrangement would have a detrimental effect on the FCA’s ability to meetthe demands of its internal and external “customers”;it is impracticable to recruit any additional employees required bythe arrangement;the arrangement would have a detrimental impact on quality or performanceof work;the arrangement cuts across any planned structural changes.Arrangement processRequests for RHW arrangements should be made in accordance with the FCA’s HomeworkingPolicy. You will be required to make a request in writing by completing the Homeworkingapplication eform on our intranet (My FCA Hub).Applications will be systematically considered and will be approved at the line manager’sdiscretion, taking into account the employee’s circumstances and the needs of theorganisation. Requests for regular homeworking will not be refused without the line managergiving, in writing, reasons for doing so. If your request is rejected, you should discuss thereasons behind the decision with your line manager in the first instance and you may be ableto agree a suitable alternative arrangement. If this is not possible, then you are strongly urgedto try and resolve the issue locally, perhaps by involving the relevant HoD or Director.Employees will be required to sign a Homeworking Agreement before they can commenceworking from home.Any RHW agreement will be subject to a six month trial period and will be reviewed at the endof that period.FCA Employee Handbook 2013 227

Reporting and out-of-office proceduresEmployees working at home should be contactable during the agreed working day, unlessspecifically agreed in advance with their line manager.TelephoneEmployees’ FCA’s phone number should be diverted to a mobile or landline number on homeworking days. If this is not possible, voicemails can be collected remotely by dialling 020 70666666 and following the instructions. A contact number must be provided to your line manager.Attendance at the officeEmployees who have a RHW arrangement may be required on occasions to attend the officee.g. a team Away day, urgent meeting or training course, on an agreed “home working” day.The employee will be expected to make arrangements to attend wherever possible. This doesnot entitle the employee to a replacement home working day.Occasional Homeworking (OHW)OHW applies when employees work from home on an ad hoc and occasional basis e.g. one ortwo days per month.OHW is permissible when:clear outputs can be achieved and agreed in advancethere is adequate equipment in order for the employee to carry out their workan employee’s absence will not create problems for othersArrangement processArrangements for OHW can be agreed informally between employee and their line manager,and approval will be at the discretion of the line manager.Line manager agreement to work at home needs to be obtained in advance on each occasion.The manager’s agreement on any occasion does not vary the employee’s contract ofemployment or create any right to home working in future.Out-of-office and contact arrangements are the same as for RHW.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Homeworking Policy as at June 2010.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The procedure is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 228

Part-time Working PolicyFollowing an application made under the FCA’s Flexible Working Policy, if you opt to work on apart-time basis, there will be a knock-on effect on a number of benefits:SalaryYour salary will be pro-rated to reflect the hours that you work as follows:Hours worked/35 x full time salary = part time salaryHolidayYour annual leave allowance will be pro-rated to reflect the number of days that you work in aweek. This will apply to both your core holiday allowance and the amount of additional leaveyou can purchase through flexible benefits.Days worked/5 x 23 = core holiday allowanceDays worked/5 x 15 = amount of additional leave that can be purchasedBank and Public HolidaysYou will be entitled to bank and public holidays on a pro-rated basis in addition to your annualleave allowance as follows:Days worked/5 x 8 (bank and public holidays in a year) = bank holiday daysMost staff find it more convenient to add the bank holiday allowance to the overall leaveallowance and then deduct bank holiday days from the overall total on the basis that:If a bank holiday falls on a day that you normally work, you can either work an alternative dayor deduct a day from your total allowance.If in any year, more bank and public holidays fall on your normal working days than your bankholiday allowance, you must either work alternative days or take the additional days from yourremaining leave allowance. You must record all leave via Employee Self-service on Chrysalis.Sick PayYou will be entitled to occupational sick pay based on your pro-rated salary. If you are absentfor a prolonged period, the normal 65 days’ paid sickness will be pro-rated to take account ofyour working pattern to determine when your salary will be reduced to half or nil pay, asfollows:Days worked/5 x 65 = sickness days paid at full salary in any 15 month rolling periodPensionIf you are a member of the FSA Pension Plan, your contributions will be based on your proratedsalary.Who is covered by this policy?This policy covers all employees.Ownership, updates and query managementThis is the FCA’s Part Time Working Policy as at April 2010.FCA Employee Handbook 2013 229

The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The procedure is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 230

16. WhistleblowingWhistleblowing PolicyBackgroundWhistleblowing can occur when an employee raises a genuine concern about dangerous,unlawful or illegal activity that they are aware of through their work.Whistleblowing is relevant to all organisations and all people. This is because every businessand every public body faces the risk of things going wrong internally. Where such a risk arises,usually the first people to realise or suspect the wrongdoing will be those who work in or withthe organisation.We have a positive commitment and open approach to whistleblowing. Our policy andprocedure is intended to be in line with the Public Interest Disclosure Act 1998 (PIDA). Thisprovides protection for whistleblowing on wrongdoing. Our policy encourages you to raiseconcerns with us in the first instance.Everyone at some point in their career may be concerned about issues they see or hear duringthe course of their work. Usually these concerns are easily resolved and we have a number ofother Employee Handbook procedures to deal with them. However, those procedures may notappear to be appropriate where:there is no other relevant procedure; oryou have genuine concerns about using a particular procedure at either the outset or theend of the process; andyour concern is about conduct likely to harm the reputation of the FCA.It can be difficult to know what to do. You may be worried about raising such issues or maywant to keep the concerns to yourself, perhaps feeling it is not any of your business or that itis only a suspicion. You may feel that raising the matter would be disloyal to colleagues,managers or to the FCA.However, we have introduced this policy to enable employees to raise genuine concerns aboutsuch matters at an early stage and in the right way. We would rather you raised the matterwhen it is a real concern, rather than wait for proof.This policy and procedure does not form part of your Contract of Employment.What does this policy cover?Who and what is covered by our Whistleblowing Policy;Which procedure to use;Anonymous disclosures;Other wrongdoing;Independent advice;How to raise a concern;What happens during an investigation;FCA Employee Handbook 2013 231

Roles and responsibilities;Protection;What happens if you may be implicated;Confidentiality;What happens after an investigation; andWhere you can get further information.Who does this Whistleblowing Policy apply to?Our policy applies to all permanent and short-term employees of the FCA. It also applies tosecondees, external consultants, contractors and agency employees while they are at the FCA.You are not required to have worked at the FCA for a minimum amount of time before you canuse this policy: you can use the procedure even if you are new.What is covered by our Whistleblowing Policy?Disclosing a genuine concern which, in your honest, reasonable belief, is in the public interestand suggests that wrongdoing has been committed, is being committed or is likely to becommitted, could qualify for protection under PIDA. Wrongdoing includes (but is not limitedto):failure to comply with a legal duty;miscarriages of justice;criminal offences;endangering the health and safety of any person; offering or accepting bribes under the Bribery Act 2010;damage to the environment; anddeliberate concealment of any of the above.Our policy additionally covers any conduct not included above which appears likely to harm thereputation of the FCA. In these circumstances, we undertake to provide the same protection asset out in the section, “What sort of response can I expect from the FCA?”. However, youwould not necessarily be protected by PIDA and you may want to take separate advice on that,for example by contacting Public Concern at Work (see the section, “Where can I getindependent advice?”).Which procedure should I use?There are existing Employee Handbook policies and procedures designed to resolve manykinds of concerns relating to your own personal circumstances, such as the way you aretreated at work. The procedures to be followed in raising and dealing with such issues underthese policies are set out in the relevant entry in the Employee Handbook:Grievance Procedure;Equality of Opportunity and Bullying & Harassment policies;Disciplinary Procedure;FCA Employee Handbook 2013 232

Performance Management Procedure;Health and Safety Policy;Security Policy; andcomplaints against the FCAThese policies and procedures aim to encourage anyone with a genuine concern to raise it bygiving the opportunity, where required, to make the complaint to someone who has no directinvolvement with the issue. You can raise such concerns with the relevant FCA contact (e.g.Health & Safety Adviser). In addition, although these procedures are not generally covered bythe same legal protection provided by PIDA, the FCA will not take action against anyone whoraises a complaint under these policies in good faith because they did so.If one of the above procedures is relevant, you should use that process unless you havegenuine concerns, at either the outset or the end of the procedure, about following therelevant Employee Handbook process. In that event, you may use the Whistleblowing Policyand Procedure.This is not an appeal mechanism for other procedures, unless – exceptionally – you think theprocess of another procedure you have been through was compromised.Not sure if it’s whistleblowing?Appendix 1 shows some examples of situations in which employees might blow the whistle andthe procedure to use.What if I don’t want to reveal my identity?If you disclose your identity, it will be easier for us to:look into the matter;protect your position; andgive you feedback where appropriate.We very much hope that the assurances we give in this policy will encourage you to discloseyour identity to those here who need to know. However, if you wish to raise an issueanonymously, we will, of course, consider it.Where can I get independent advice?If you feel you need independent advice at any stage of the process, you may contact theindependent charity – Public Concern at Work (http://www.pcaw.co.uk/index.htm) on 0207404 6609, or email helpline@pcaw.co.uk. Public Concern at Work gives free and confidentialadvice on whistleblowing matters, but remember not to disclose any confidential informationthe FCA has received.FCA Employee Handbook 2013 233

How do I go about raising a concern?The table below highlights the options you have to raise concerns:RouteWho to raiseyour concernwithWhathappensnext?Actions thatwill betakenExamples ofwhen to useoptionsRoles &ResponsibilitiesOption 1Your linemanagerReferred toDirector ofInternal Auditto investigate.See –section,“What takesplace duringaninvestigation?”If theinvestigationuncovers anywrong-doing,sanctions willbe decided atthis stageSee Appendix1, e.g. 3 & 4See section,“Responsibilities”Option 2Director ofInternal AuditAs above As above If the concerninvolved yourline manager,HoD orDirector.See Appendix1, e.g. 1, 2, 3& 4As aboveOption 3Chair of theAuditCommittee ofthe Board orChairman ofthe FCAAs above As above See Appendix1, e.g. 5As aboveOption 4DirectorGeneral ofFinancialServices atHM TreasuryAs above As above See Appendix1, e.g. 6As aboveOption 5 Relevant body As above As above See Appendix1, e.g. 7As aboveFor further detail on these options see below:Option One: Line ManagerTelling your immediate manager. This can be done either face-to-face or in writing.We encourage you to raise your concerns in writing where possible, setting out the backgroundand history of your concerns (giving names, dates and places where possible) and indicatingthe reasons for your concerns. Please make it clear that you are raising your concern as part ofour Whistleblowing Policy. The matter will then be referred to the Director of Internal AuditDivision (see section, “What takes place during an investigation?”).Option Two: Director of Internal AuditIf the concern involves your immediate manager, Head of Department or Director,or for any reason you would prefer not to tell them, you may raise the matter directly with theDirector of Internal Audit in writing or face-to-face or to internal.whistle@FCA.gov.uk. In theirabsence, you can contact one of the Heads of Department or Managers in Internal AuditDivision.FCA Employee Handbook 2013 234

Option Three: Chair of the FCA or Chair of the Audit CommitteeIf you believe that your concern should be raised at a non-executive level, perhaps because itaffects the FCA as a whole or you consider that the matter could seriously compromise theFCA’s reputation, you can raise the matter confidentially with the Chair of the Audit Committeeof the Board, or with the Chair of the FCA. You can write to the Chair of the Audit Committeecare of the Company Secretary of the FCA Simon Pearce (Company Secretary). You cancontact the Chair of the FCA by email or by calling extension 63000.Option Four: Director of Financial Services at HM TreasuryIf you have disclosed your issue internally and you are concerned either by the response orlack of response, oryou feel unable to talk to anyone internally for whatever reason, andthe concern falls within the description given in the section, “Who is covered by ourWhistleblowing Policy?”;you can contact the nominated Treasury official, who is:Director General of Financial Services,HM Treasury,1 Horse Guards Road,London SW1A 2HQTel: 0207 270 4448PIDA protects you if you contact the Treasury in circumstances where you satisfythe test for speaking to the FCA regarding any of the examples of wrongdoing listed above(but not wider conduct which appears likely to harm the reputation of the FCA). The Treasurywill investigate in whatever way it considers appropriate, but is likely to contact the FCA,normally the Director of Internal Audit, to discuss the disclosure. For the avoidance of doubt,the Treasury cannot investigate whistleblowing made against FCA regulated firms: in thesecircumstances, please email whistle@FCA.gov.ukor telephone 020 7066 9200.Option Five: Other Relevant BodiesIf your disclosure is within the list of wrongdoings above and comes under the responsibility ofanother public body prescribed for the purpose under PIDA, you can contact the relevant body.A list of these bodies, the matters for which they have been prescribed under PIDA and therelevant test can all be found under Whistleblowing.What takes place during an investigation?To consider your disclosure fully it is likely that one or more fact-finding meetings will takeplace. If we need you to attend these meetings you may be permitted to be accompanied by:a fellow employee of your choice who may be a friend or colleague;a Staff Representative; ora trade union official.You will be able to confer with your companion during the course of the meeting and they mayaddress the meeting but may not answer questions on your behalf.Those under investigation may also be accompanied by a fellow employee of their choice whomay be a friend or colleague, a Staff Representative or a trade union official. We will not askyou to attend a meeting where those under investigation are also present.FCA Employee Handbook 2013 235

Please note that members of HR and Internal Audit cannot accompany you or those underinvestigation to any meetings.The Director of Internal Audit may be accompanied by any FCA employee to help with theinvestigation.The Director of Internal Audit will conduct a full investigation to establish whether wrongdoinghas occurred. The format of the investigation may vary depending upon the circumstances.He/she may delegate the investigation to one of the Managers in Internal Audit Division or toanother appropriate person.Please note that a similar process to investigate will be used for all other options.ResponsibilitiesEmployees and others working at the FCAto be aware of this policy and procedures;when making any disclosure, tell us if you have a direct personal interest inthe matter.Managers must:make their employees aware of this policy and procedures;encourage a positive open working culture for staff and others working at the FCA toexpress easily their concerns;take concerns seriously;guide staff to the most appropriate route; andrefer concerns raised under this Whistleblowing Policy to the Director of Internal Auditwithin five working days.Director of Internal Audit must:acknowledge the whistleblower’s disclosure;indicate to the whistleblower how he/she proposes to investigate the disclosure, whereappropriate, and the likely timescales;where appropriate keep the whistleblower regularly informed of progress;take concerns seriously, considering them fully and fairly;resolve issues as promptly as possible;support the Director General of Financial Services, Chair of the FCA, or Chair of the AuditCommittee in matters that have been raised with those individuals directly;to the appropriate extent communicate the findings to you, the individual(s) underinvestigation and, if appropriate, members of FCA management or other externalauthorities;keep a confidential log to assess effectiveness of the policy and any emerging trends;FCA Employee Handbook 2013 236

provide periodic anonymised reports on disclosures to Executive Management for inclusionin reports to the Board; andprovide periodic anonymised reports on disclosures raising ethical issues to the AuditCommittee.The role of Staff Representatives:advise employees how and with whom to raise concerns when they arise; andprovide support to employees at any stage of the process.The role of the FCA’s Chair and the Chair of Audit Committee:acknowledge the whistleblower’s disclosure;indicate to the whistleblower how they propose to investigate the disclosure, whereappropriate and the likely timescales;where appropriate keep the whistleblower regularly informed of progress;take concerns seriously, considering them fully and fairly;resolve issues as promptly as possible;liaise with the Director of Internal Audit in investigating the matter; andto the appropriate extent communicate the findings to you, the individual(s) underinvestigation and if appropriate, members of FCA management or other externalauthorities.The role of the Director of Financial Services at HM Treasury:acknowledge the whistleblower’s disclosure;indicate to the whistleblower how he proposes to investigate the disclosure, whereappropriate and the likely timescales;where appropriate keep the whistleblower regularly informed of progress;take concerns seriously, considering them fully and fairly;resolve issues as promptly as possible;liaise with the Director of Internal Audit, Chair of the FCA, or Chair of the Audit Committeein matters that have been raised with him/her directly; andto the appropriate extent communicate the findings to you, the individual(s) underinvestigation and, if appropriate, members of FCA management or other externalauthorities.What sort of a response can I expect from the FCA?Regardless of which Employee Handbook procedure you use:FCA Employee Handbook 2013 237

First and foremost, if you have a reasonable belief that wrongdoing is taking, has taken oris likely to take place, you will be treated fairly and justly by the FCA and we will take anymatter seriously.We will take all reasonable steps to ensure that no person under our control victimises orretaliates against you or subjects you to any detriment as a result of you raising a genuineconcern under this policy.If you disclose to us in good faith, we undertake that you will not lose your job becauseyou did so.What happens if I am implicated?If you blow the whistle and actively cooperate with an investigation in which you may beimplicated in any wrongdoing, you are likely to receive a lighter sanction than might otherwisehave been the case (unless the misconduct is so serious that no amount of cooperation orother mitigating conduct can justify a decision not to adopt that particular sanction).ConfidentialityIn raising a concern about wrongdoing (unless you have specifically requested anonymity), youmay assume that only those FCA employees involved in investigating it will know your identity.We will not reveal your identity outside this group except:where we are legally obliged to do so;where that information is already in the public domain;on a strictly confidential basis to a professionally qualified lawyer or accountant whengetting advice; orto the police or as otherwise required under anti-money-laundering requirements;If there are any other circumstances in which we are required to reveal your identity outsidethose identified above, we will discuss this with you first. Under no circumstances will wereveal your identity outside this list without your knowledge.What happens after the investigation?The Director of Internal Audit will ensure, to the appropriate extent, that the findings of theinvestigation are communicated to:you, as the person raising the wrongdoing concern;the individual(s) under investigation; and if appropriate, members of FCA management orother external authorities who may need to consider whether action should be taken onthe basis of the findings.The records will be destroyed after seven years, unless a longer period is considered bythe FCA to be appropriate.FCA Employee Handbook 2013 238

Where can I obtain further information?If you would like further information the following websites may be of interestto you:Whistleblowingwww.pcaw.co.ukAlternatively, contact the HR Helpline at * HR Helpline.Appendix 1Situations in which employees may blow the whistle:Example oneYou are working in an area which regularly engages outside contractors. You have noticed howthe one which has been named FCA’s preferred supplier does not deliver on time or to budget.Your Head of Department, who is very friendly with one of the employees in the contractingfirm, doesn’t appear to share your concerns, but is quick to make excuses for them. Seniormanagement seem to have accepted these explanations and don’t seem to be concerned. Yoususpect your Head of Department may be receiving inducements. What should you do?Report the suspicion to the Director of Internal Audit Division. (Option 2)Example twoYou are in the gym and you notice that everyone using a piece of equipment is nowcomplaining of back trouble. You see that one part of it is loose, but, despite reporting it to themanager of the gym, nothing has happened. What should you do?Report the incident immediately to your manager (Option 1). If the concern involves yourimmediate manager, Head of Department or Director, or for any reason you would prefer themnot to be told, raise the matter directly with the Director of Internal Audit Division (Option 2).Example threeA former colleague, who supervised XYZ firm, starts work in the XYZ compliance department.You inherit his work and note there are no records of his visits to the firm. What should youdo?Report the incident immediately to your manager (Option 1). If the concern involves yourimmediate manager, Head of Department or Director, or for any reason you would prefer themnot to be told, raise the matter directly with the Director of Internal Audit (Option 2).Example fourYou work for Harbour & Jones in the employer’s restaurant, on the classic counter and over thepast few weeks you notice a member of FCA staff who doesn’t seem to be paying for theirfood. You put this down to your error or their genuine mistake. However, recently you noticethe same person doing this on a daily basis. You are not sure what to do and you are worriedbecause you did not report it the first time. What should you do?Report the incident immediately to your manager or the Head of Operations Services (Option1). If the concern involves your immediate manager, Head of Department or Director, or forany reason you would prefer them not to be told, raise the matter directly with the Director ofInternal Audit (Option 2).FCA Employee Handbook 2013 239

Example fiveYou have a concern that could impact on the FCA’s reputation, but do not want to raise it withthe Director of Internal Audit as you believe they are compromised in some way. What shouldyou do?Report the incident directly to the Chair of the Audit Committee of the Board or with the Chairof the FCA (Option 3).Example sixYou raised a concern under the FCA’s Whistleblowing Policy, but you do not feel confident thatthe matter was dealt with appropriately by the FCA. What do you do?Refer the matter to the Director of Financial Services at HM Treasury (Option 4).Example sevenYou wish to raise a concern that comes under the responsibility of another public body. Whatdo you do? Refer the matter to the relevant body (Option 5).Contractual information (start)Indemnity and Notification RequirementsThe FCA will indemnify you (its employees and anyone who is seconded to the FCA or isotherwise acting as a member of its employees) against liability you incur in connection withclaims or proceedings brought against you in relation to anything done or not done whenworking for the FCA. This applies whether proceedings are brought in the UK or overseas. Theindemnity will cover any liabilities incurred in connection with such claims or proceedings,including any costs reasonably incurred in defending them, whether or not judgement is givenin favour of the employee concerned. If you are seconded or assigned while employed by theFCA, it will, wherever appropriate, as a pre-condition of any secondment, either:expressly confirm in writing that it will continue to indemnify you in line with the terms ofthis contract throughout the course of the secondment; orensure that the organisation you are seconded or assigned to gives you an equivalentindemnityThe indemnity will not extend to any liability incurred where your acts or omissions are:clearly done or omitted to be done in bad faith; orare clearly outside or inconsistent with the scope of your responsibilities under yourContract of Employment with the FCA.The indemnity is conditional with all of the following requirements. If you fail to comply withthem, this could invalidate or otherwise affect the indemnity. The conditions are that youshould:inform your manager within the FCA and the FCA Company Secretary as soon as youbecome aware of the possibility of a claim against you or the FCA;avoid any discussion of the matter with the potential claimant, but if this is impossible,keep a written note of the conversation;under no circumstances admit liability for yourself or the FCA;not try to settle or compromise or reduce the potential claim;FCA Employee Handbook 2013 240

not seek outside legal advice except with the authority of the FCA General Counsel orCompany Secretary; andinform your management within the FCA and the FCA Company Secretary (CompanySecretary) of any discovery of, or suspicion of, fraud or dishonesty by a past or presentemployee of the FCA or anyone claiming to act on its behalf.Contractual information (end)Who is covered by this policy?This policy applies to all permanent and short-term employees of the FCA. It also applies tosecondees, external consultants, contractors and agency employees while they are at the FCA.Ownership, updates and query managementThis is the FCA’s Whistleblowing Policy as at September 2013.The policy is owned by the HR Division and has been developed in conjunction with theInternal Audit Division and Staff Consultative Committee.The procedure is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 241

Disciplinary ProcedureThe FCA believe in creating a working environment where our employees know what isexpected from them – this includes following reasonable instructions, complying with the termsof their contract of employment and adhering to the FCA’s conduct policy, security andcompliance standards.We believe in managing our employees fairly and consistently, but where conduct does notmeet our expectations, we will discuss the improvements required and take whatever action isrequired.PrinciplesWhat you can expect from the FCAWe will manage any concerns about conduct in line with the following principles:We will discuss any concerns we have with you and listen to what you haveto say.We will use informal processes to try to resolve matters wherever possible.We will not take formal action until we have undertaken a thorough investigation.We will keep any action and paperwork confidential – as far as we can.We will follow this disciplinary procedure if formal action is needed.We will treat you fairly and if necessary may vary these procedures where individualcircumstances require it.What the FCA expects of youComply with reasonable instructions, the terms of your contract of employment and theFCA’s conduct, policy, security and compliance standards.Discuss any issues that affect your work with your manager in the first instance.The Disciplinary ProcedureThe FCA’s Disciplinary Procedure has three stages and we reserve the right to initiate theprocedure at any stage taking into account the alleged misconduct of an employee and all thecircumstances of the matter.Stage 1 – First written warning: If your conduct has failed to meet expected standards,despite interventions from your line manager (for clear desk breaches there might not be anyinterventions), you will be required to attend a disciplinary hearing chaired by your Manager.The exact nature of the suspected misconduct will be explained in full. If your Managerbelieves it to be justified, you may be given a written warning, which will give details of thecomplaint (misconduct) and will warn that further action will result if there is a repetition of themisconduct or no satisfactory improvement within a specified period. The written warning willcontain specific actions and/or objectives that need to be fulfilled in order for agreedimprovement to take place. A copy will be placed on your personal file, but will be disregardedfor disciplinary purposes after six months subject to satisfactory conduct.Stage 2 – Final written warning: If the misconduct is sufficiently serious or if, following aformal written warning, there is a further incident of misconduct within the period specified(whether or not of the same nature or severity), you will be required to attend a disciplinaryhearing chaired by your Director/Head of Department. Your Director/Head of Department willFCA Employee Handbook 2013 242

then decide on the action to be taken. If he or she believes the complaint of misconduct to bejustified, you may be given a final written warning stating that if your conduct does notimprove during a specified period, dismissal, or some other specific action, will result. Thewarning will contain specific actions and/or objectives that need be fulfilled in order for agreedimprovement to take place. A copy will be placed on your personal file, but will be disregardedfor disciplinary purposes after 12 months subject to satisfactory conduct (although inexceptional cases the period may be longer, or the final written warning may not bedisregarded).Stage 3 – Dismissal: If your misconduct is sufficiently serious, or if your conduct is stillunsatisfactory following a final written warning and you fail to reach the required standards,you will normally be dismissed. The decision to dismiss will be taken following a disciplinaryhearing by a panel comprising a Director and/or Head of Department who have not beeninvolved in the investigation, plus a member of the HR Division who will be there to provideprocedural guidance. Any decision to dismiss will be taken following a thorough review of allthe evidence.General misconductExamples of general misconduct include (but are not limited to):persistent poor time keeping;unauthorised absence and/or poor attendance record;failure to observe FCA procedures;unreasonable refusal to follow reasonable instructions or work request issued bya manager;failing to deal promptly, efficiently and politely with third parties with whom you havedealings on behalf of the FCA; andrude or abusive behaviour;failure to maintain effective working relationships.In the case of general misconduct you will normally be issued with a written warning for a firstoffence and recommendations may also be made about withholding or deferring the receipt ofannual individual incentive award payments and/or pay rises.Gross misconductExamples of gross misconduct include (but are not limited to):fraud, theft, dishonesty or obtaining or attempting to obtain an advantage atthe expense of the FCA or any person, firm or organisation that is regulated by the FCA; offering or accepting bribes under the Bribery Act 2010;falsification of records, reports, accounts, expense claims orself-certification forms;physical assault of another employee or member of the public;damage to or deliberate misuse of company property including use ofthe Internet;FCA Employee Handbook 2013 243

eing under the influence of alcohol, drugs or other substances that impair performance orconduct while at work (including attending any event, whether social or otherwise at FCApremises or elsewhere);being convicted of any criminal offence (whether or not relating to employment), which inthe opinion of the FCA, seriously undermines the FCA’s confidencein you;deliberate acts of discrimination, harassment or victimisation in breach of the Equality ofOpportunity Policy or Bullying & Harassment Policy, or instructing or aiding someone tocommit an act of discrimination, harassment or victimisation in breach of the Equality ofOpportunity Policy;making false statements about one’s own or another employee’s work, the falsification ofworking papers, or the making of any statements likely to be detrimental to the reputationof the FCA;misuse of the Whistleblowing Policy by knowingly raising false and malicious allegations;subjecting a colleague to a detriment or otherwise victimising a colleague who has raisedconcerns, made a complaint or given evidence or information under the WhistleblowingPolicy or under any other FCA policy or procedure;repeated failure to comply with a reasonable work request;bringing the FCA into disrepute.We reserve the right to dismiss you, without notice or pay in lieu of notice, if in our opinionyou have committed an act of gross misconduct.SuspensionIf you are suspected of gross misconduct, you may be suspended from work on full pay andcontractual benefits while we carry out an investigation.If gross misconduct is not initially suspected or believed to have occurred, but during thecourse of an investigation the person conducting it reasonably forms the opinion that a seriousbreach of discipline may have occurred, you may then be suspended.Any decision to suspend will be confirmed in writing within three working days and will confirmthat the nature of the suspension is precautionary, not disciplinary, pending the outcome ofthe disciplinary investigation. The period of suspension will be as brief as possible and will bekept under review.InvestigationThe FCA will promptly and thoroughly investigate any matter where we reasonably suspect orbelieve that conduct is not in line with our expectations. The investigation will be as thoroughas possible. You will be asked to supply any evidence relevant to the investigation and will benotified when it has concluded.Depending on the circumstances of the case, you may be invited to attend an investigatorymeeting. If such a meeting is held prior to a disciplinary hearing, you will be informed at theoutset that the meeting is an investigatory interview. The FCA reserves the right to dispensewith an investigatory meeting and to proceed directly to a formal disciplinary hearing.In most cases the investigator(s) will not normally be involved in making decisions relating tothe outcome of the case and will only attend any disciplinary hearing in order to present factsFCA Employee Handbook 2013 244

and supporting materials (as required). However, where the FCA considers it appropriate, theinvestigator may also act as the decision maker in a disciplinary hearing.Right to be accompaniedYou are entitled to be accompanied at formal disciplinary meetings by a companion, who maybe a Staff Representative or another FCA employee of your choice who may be a friend orcolleague. Please note that the fellow employee should not be a member of the HR Division.Alternatively, you may be accompanied by a Trade Union official. The meeting may bepostponed, at your request, for up to five working days if your chosen companion is notavailable to attend on the date set for the meeting.Disciplinary hearingPreparing for the hearingWhere there are reasonable grounds to believe that you have committed an act of misconduct,you will be invited to attend a disciplinary hearing. Prior to any disciplinary hearing, the FCAwill provide you with:at least 3 working days’ advance notice of the hearing;details of the time and venue;details of the purpose of the hearing, potential sanctions (where appropriate) andconfirmation that it will be held under the FCA’s disciplinary procedure;written details of the nature of your alleged misconduct plus all copies of relevantdocumentation that the FCA intends to rely upon at the hearing;instructions that either party should notify the opposite party of any intention to callwitnesses or supply witness statements.If you are unable to attend the disciplinary hearing and provide a good reason for failing toattend, the hearing will be adjourned to another day. The FCA will give at least three workingdays’ advance notice of the revised hearing. Unless there are special mitigating circumstances,if you are unable to attend the rearranged hearing, it will take place in your absence. You willalso be allowed to make written submissions in such a situation. Your companion or tradeunion official may attend in such circumstances and will be allowed the opportunity to presentyour case.The hearingThe disciplinary hearing will normally be conducted by your line manager, unless a more seniormanager is required (see stages above).You will be given a full explanation of the case against you and be given the opportunity tostate your case and put forward an explanation of your conduct and/or mitigating factors.The FCA may adjourn disciplinary proceedings if it appears necessary or desirable to do so(including for the purpose of gathering further information). You will be informed of the periodof any adjournment. If further information is gathered, you will be allowed a reasonable periodof time, together with your companion (if any), to consider the new information beforereconvening the disciplinary hearing.As soon as possible after the conclusion of the disciplinary proceedings, the decision maker (ortheir nominated alternative) will convey the decision to you and will inform you of whatdisciplinary action, if any, is to be taken. The decision will be confirmed in writing. You will benotified of your right of appeal under this procedure.FCA Employee Handbook 2013 245

Disciplinary actionWhere the FCA establishes that you have committed a disciplinary offence, the followingdisciplinary action may be taken:If the misconduct is serious a First Written Warning may be given. If the conduct is sufficientlyserious a Final Written Warning maybe issued.If, following a First Written Warning, there is a further incident of misconduct (whether or notof the same nature) within the period, a Final Written Warning may be issued.If the misconduct is sufficiently serious or if conduct is still unsatisfactory following a FinalWritten Warning, you will normally be dismissed. Where the FCA establishes that you havecommitted an act of gross misconduct, you may be summarily dismissed without notice or payin lieu of notice, following an investigation and hearing.Alternatives short of instant dismissal may be considered at the absolute discretion of the FCA.We may use one or more of the following depending on the circumstances:Suspension without pay up to a maximum of 7 days.Demotion to a more suitable job, if available.Transfer to another department/division.The alternatives short of dismissal mentioned above are not exhaustive and the FCA reservethe right to take any action we consider appropriate in the circumstances.In addition to formal action, consideration will be given to withholding or deferring the receiptof annual individual incentive award payments and/or pay rises.While any formal warnings are in place, you are required to disclose the matteras part of the internal recruitment process, should you decide to apply for an advertised role.AppealsYou may appeal against any disciplinary sanction imposed against you.Appeals may be lodged on a number of grounds, including:new evidence coming to light;the decision being wrong or unreasonable;the inappropriateness of any penalty imposed; andprocess or procedural irregularities.FCA Employee Handbook 2013 246

Any appeal against the issue of a written warning or dismissal must be lodged in writing withthe appropriate manager (see table below) within five working days of being informed of thedecision that has been made detailing the grounds for appeal.Action Taken by Appeal to Appeal heard byFirst written warning Line Manager Manager of personwho issued thewarning.Manager of person who issuedthe warning.Final written warning Director/Head ofDepartmentManager of personwho issued thewarning.Manager of person who issuedthe warning.DismissalDirector and/or Headof DepartmentHR DirectorTwo people who will be senioremployees of the FCA and notinvolved in the case to date.The FCA will normally hold the appeal meeting within ten working days of receipt of the writtenrequest where possible, and will give at least three working days’ notice of the meeting.The manager hearing the appeal must decide on the basis of representations from you and themanager, together with any subsequent facts that may have come to light, whether to upholdthe decision that has been made.An appeal against dismissal will be heard by two people appointed by the HR Director, who willbe senior employees and who will not have been involved in any action previously conductedunder the disciplinary. A member of the HR Division will also be present to take notes and giveprocedural advice when required.The outcome of the appeal meeting and the reasons for the decision will be confirmed inwriting as soon as possible.At the appeal, any sanction imposed will be reviewed but cannot be increased.Where an appeal against dismissal fails, the original decision to dismiss will have hadimmediate effect and, if the dismissal is by notice, the period of notice will already havecommenced on the date that the decision was given. If the original decision was to dismissimmediately without notice, the FCA is under no obligation to pay for any period between thedate of the original dismissal and the appeal decision – the original date of termination willstand unless the decision to dismiss is overturned on appeal.TimelinesThe timelines provided in this procedure are intended as a guideline. Although in many caseswe would expect the process to operate more quickly, there may be occasions where it provesimpossible to meet the timelines. This may include, for example, occasions where keyparticipants in the process are not available due to holiday. Similarly, the timescales may needto be extended if the matter is especially complex and requires detailed investigation. In thesecircumstances you will be told the date by which you can expect a response and every effortwill be made to complete the process as quickly as possible.Who is covered by this policy?This procedure covers all employees.FCA Employee Handbook 2013 247

Ownership, updates and query managementThis is the FCA’s Disciplinary Policy as at September 2013.The policy is owned by the HR Division and has been developed in conjunction with the StaffConsultative Committee.The procedure is not contractual and is subject to change at the discretion of the FCA – anychanges will be published on the intranet.Any questions on the application of the policy should be directed to * HR Helpline or extension67070.Contractual status of this policyThis policy does not form part of your contract of employment.FCA Employee Handbook 2013 248