SEC Seeks Diversity Data From Regulated Firms

The U.S. Securities and Exchange Commission (SEC) has kicked off its biennial effort to collect self-assessments on diversity policies and practices from regulated entities.

In a press release on Wednesday, the SEC announced it has commenced inviting companies under its oversight to voluntarily submit self-evaluations of their diversity and inclusion programs. The data will be used by the agency to analyze trends and progress in the diversity efforts of regulated firms.

"The participation of regulated entities in submitting diversity self-assessments is critical for a more comprehensive understanding of the diversity practices and policies that are being implemented as well as to share information on practices and identify opportunities," said Nathaniel H. Benjamin, Director of the SEC's Office of Minority and Women Inclusion (OMWI).

The self-assessments give companies a chance to review strengths and areas for improvement in their diversity policies and initiatives, the SEC said. Firms can use the OMWI's Diversity Self-Assessment Tool or submit evaluations in any format they choose.

Benjamin emphasized that the self-assessment submissions are voluntary and not part of the SEC's examination process for regulated entities. The OMWI has published a FAQ to provide more details on the process.

The invitation for diversity self-assessments occurs every two years as the SEC looks to promote diversity and inclusion in the financial services industry and among its own regulated constituents. The last self-assessment submissions were collected in 2022.

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