The Financial Conduct Authority (FCA), Prudential Regulation Authority (PRA) and Bank of England have started a review to improve diversity and inclusion in financial services.
The regulators have published a discussion paper, open until 30 September, and are inviting interested parties to submit their feedback, especially on how changes could be tailored to specific sectors to make sure they are proportionate.
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They set out policy options including the use of targets for representation, measures to make senior leaders directly accountable for diversity and inclusion in their companies, linking remuneration to diversity and inclusion metrics and a new approach to considering diversity and inclusion in non-financial misconduct.
There will also be a pilot survey later this year to test how firms’ can provide data with a view to considering regular reporting in the future.
We’re seeking views, along with PRA and @bankofengland on ideas to improve diversity and inclusion in #finservculture https://t.co/K0n5oNLGJf
— Financial Conduct Authority (@TheFCA) July 7, 2021
“While some progress has been made to improve diversity and inclusion in parts of the financial services sector over the last decade, the discussion is still in its early stages, and more needs to be done to speed up progress,” said PRA chief executive Sam Woods.
“Regulators and industry need to work together to increase diversity at senior levels and ensure that the UK’s financial services firms are best equipped to serve the economy. A lack of diversity of thought can lead to a lack of challenge to accepted views and ways of working, which risks compromising firms’ safety and soundness.”