Culture Secretary Lisa Nandy said the allegations against Wallace were "horrendous and appalling".
"This case highlights a wider issue and much more must be done to ensure that everyone working in the creative industries is treated with dignity, fairness, and respect," she said.
Philippa Childs, head of creative industries union Bectu, said the report shows how "inappropriate behaviour has gone unchecked for far too long" in the industry.
"This is a real failure by Banijay to take these issues seriously and act accordingly," she said.
Childs stressed how "vulnerable" freelancers feel when "experiencing or witnessing poor behaviour" by people in "positions of power and influence."
Employers, she continued, have "a duty to stamp out bad behaviour and support their workforces when issues are raised."
She added: "Misogyny, intimidation, ageism and sexual harassment should have no place in modern workplaces. Yet they continue to plague our creative industries, propped up by inadequate reporting mechanisms, a lack of accountability and an industry that enables extreme power dynamics and 'untouchable' talent."