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The FCA and PRA set out their proposals to regulate diversity and inclusion
Regulatory focus on diversity and inclusion (D&I) has steadily increased over recent years forming part of the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA)’s wider focus on culture and Environmental and Social Governance (ESG) within the financial services industry.
In September 2023 the regulators published much-awaited proposals to introduce a regulatory framework to govern D&I. FCA CP23/20 and PRA CP18/23 respond to feedback to the regulators’ joint discussion paper DP21/2 which indicated that industry would welcome regulatory support to improve D&I. The consultations are further informed by the FCA’s findings from its 2022 multi-firm D&I review indicating a more consistent comprehensive approach to D&I is required and change should be accelerated.
The proposals centre on D&I strategies targets reporting of D&I data and the formal recognition of a lack...
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