Promoting Diversity and Inclusion in Financial Services: Regulatory Proposals

The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have released consultation papers outlining proposals to boost diversity and inclusion in financial services firms. These measures are intended to support healthy work cultures, reduce groupthink and unlock talent, as well as enhancing safety and soundness of firms and understanding of diverse consumer needs. The proposals set out flexible and proportionate minimum standards to raise the bar, placing more requirements on larger firms, such as setting targets, regulatory reporting and disclosure. This aims to ensure improved internal governance, decision-making and risk management, with the ultimate aim of better outcomes for markets and consumers. The consultation is open until 18 December 2023 and the FCA and PRA welcome comments on the proposed approach. Final rules are planned for publication in 2024.