FCA, PRA and Bank of England set out plan to improve diversity and inclusion in regulated firms

The FCA published a joint discussion paper with the Prudential Regulation Authority and Bank of England, seeking views on ideas to improve diversity and inclusion in financial services.

The discussion paper sets out policy options including:

• the use of targets for representation;
• measures to make senior leaders directly accountable for diversity and inclusion in their firms;
• linking remuneration to diversity and inclusion metrics; and
• the regulators’ approach to considering diversity and inclusion in non-financial misconduct.

The discussion paper also focuses on the importance of data and disclosure in order to enable firms, regulators and other stakeholders to monitor progress.

The regulators believe that increased diversity and inclusion will advance their statutory objectives by resulting in improved governance, decision-making and risk management within firms, a more innovative industry, and products and services better suited to the diverse needs of consumers.

The regulators are asking for responses to the discussion paper by 30th September 2021.

Source: FCA