Prioritizing Diversity and Inclusion in Financial Services: the Role of Regulators

The Financial Conduct Authority (FCA) has recently received a report from the independent Women in Finance Charter Committee, which was commissioned by the FCA. The Committee's report focused on the progress made in regards to diversity and inclusion within financial services firms, and provided recommendations for the FCA's role in promoting change.

The FCA agrees with the Committee's assessment that there is a clear link between diversity and inclusion and improved results within firms. They also recognize that promoting diversity and inclusion can align with the FCA's statutory objectives and benefit the competitiveness of financial services. As such, the FCA believes that regulators have an important role to play in driving change.One key area that the FCA will prioritize is tackling misconduct, specifically related to bullying and sexual harassment. They will also consider the Committee's recommendations on whistleblowing and the use of non-disclosure agreements, building upon their existing work in these areas.

The FCA has also been asked to consider proposals for firms to set their own diversity and inclusion strategies, as well as collect, report, and disclose data on certain characteristics. They will carefully reflect on the views received, particularly those of the Committee, on these proposals.Additionally, the Committee has called for the FCA to engage directly with boards and senior leaders on the topic of culture and to encourage firms to adopt family friendly policies with equality impact assessments. The FCA will also consider these recommendations carefully and incorporate them into their efforts to promote diversity and inclusion within the industry.