The Financial Conduct Authority (FCA) has published its policy proposals for improving the transparency of diversity and inclusion on company boards and executive committees. (1)

New rules require firms to include a statement in their annual financial report setting out whether they have met specific board diversity targets, as well as expanding reporting requirements to cover the diversity policies of key board committees on a ‘comply or explain’ basis. This reflects the FCA’s focus on speeding up the pace of change around diversity and inclusion in financial services with in-scope companies compelled to make the required disclosures in their annual reports for financial years starting on or after 1 April 2022.

In their broader focus on diversity and inclusion in the financial services sector, the FCA are seeking to achieve 4 outcomes:

1. Supporting a healthy culture to deliver higher standards of conduct.
2. Reducing groupthink to support effective governance, challenge and decision making.
3. Promoting innovation and competition in products that cater for a diverse customer base.
4. Unlocking talent and making the UK market an attractive place to do business.

ABSTRACT can support the equality, diversity and inclusion plans of FCA regulated firms. Embedding cultural change, improving diversity of thought, judgement, decision-making and unlocking talent are all key areas where we can help.

We are committed to helping more women and people from minority groups into leadership positions by developing their careers and personal skills through our impactful learning and development programmes and webinars. We also collaborate with organisations committed to doing the same. Our Cultural Competence & Character Programme also helps participants to engage, set the cultural tone and create an inclusive environment, embedding behavioural change through application. 

Get in touch if you want to find out more about our programmes and drive change in your organisation.

References:

(1) FCA Announcement: https://www.fca.org.uk/publications/policy-statements/ps22-3-diversity-inclusion-company-boards-executive-managment