In July the FCA and PRA (Prudential Regulation Authority) published a joint Discussion Paper (DP) aimed at further increasing rapid and meaningful change on diversity and inclusion in the financial services sector.
The paper covers many policy options including the use of targets for representation, measures to make senior leaders directly accountable for diversity and inclusion in their firms and linking remuneration to diversity.
The paper also focuses on the importance of data and disclosure in order to enable firms, regulators and other stakeholders to monitor progress.
Recent research has shown the positive benefits of diversity and inclusion which can result in firms’ improved internal governance and risk management, a more innovative industry, and financial products and services that meet the diverse needs of consumers.
Contributions to the paper have been encouraged from all parts of the financial sector, and parties with an interest in this issue. Comments on the Discussion Paper are to be submitted by 30 September 2021.