Regulators show their support for equality in UK and Ireland

Nick Goddard

Financial Services regulators in UK and Ireland continue to show their support for greater equality, diversity and inclusion in business.

Financial Conduct Authority

In the UK, the Financial Conduct Authority (FCA) have stated their belief that diverse and inclusive cultures enable firms to deliver better outcomes for consumers and markets, helping to ensure that products and services cater to the diverse needs of their customers, as well as helping firms to attract and retain talent. The FCA say that by creating healthier organisational cultures, by driving higher standards of conduct and unlocking talent, the UK will become an even more attractive and competitive place to do business.

FT Adviser reports that the FCA are pointing to growing evidence that a “diversity of perspectives and thought, when part of an inclusive culture, results in better judgements and decision making”. The FCA will publish its Consultation Paper on Diversity and Inclusion in the financial sector later this year, building on its earlier Discussion Paper.

The Parker Review

In March 2023, the UK Government backed Parker Review also published their awaited update report on Improving the Ethnic Diversity of UK Boards. Sponsored by EY and the National Equality Standard, it updates on progress against objectives set in 2017 for companies to appoint at least one director from a minority ethnic group on each FTSE 100 Board by 2021 and on each FTSE 250 Board by 2024. The voluntary survey of FTSE 100 companies showed that 96% of companies in the index had at least one director from an ethnic minority background on their board by the end of 2022 and around two-thirds of FTSE 250 companies who reported. Leading the review, Sir John Parker said “We have seen remarkable progress in achieving our targets” and the report sets out how UK business needs to “change the conversation” to meet the challenges ahead. The campaign calls on business leaders to publicly make commitments to create inclusive cultures in organisations that allow talent to thrive.

Ireland

Separately, a recent article in the FT explains how Ireland’s regulator has supported greater gender diversity in the Irish financial sector, how this has provided an antidote to groupthink and better decision making since the global banking crisis. The article highlights the improving number of women in senior roles in financial services in Ireland.

Summary

We believe that visible commitments from regulators do help. We continue to work with clients and organisations in the UK, Ireland and internationally to champion more inclusive leadership, cultural transformation and better career management. Improving participation and inclusion will encourage creativity and diversity of thought, leading to fairer and better places to work with enhanced productivity and performance.