PRA and FCA proposals on diversity & inclusion and non-financial misconduct seek to drive change in the UK financial sector
On 25 September, the PRA and FCA each published their highly anticipated consultation papers (CP 18/23 and 23/20 respectively) on diversity and inclusion (D&I) in financial services, highlighting the continued regulatory concern in this area. Originally anticipated in September 2022, these CPs have been delayed a couple of times by the UK regulators, but despite the delay in their publication, their importance cannot be overstated.
The CPs follow the PRA and FCA’s 2021 joint discussion paper (DP 21/2) where they considered the state of D&I in the industry and set out the case for further progress and potential policy intervention (please see our blog post here for more details), and the FCA’s 2022 multi-firm D&I review (here) aimed at getting a better understanding of firms’ D&I approaches. In April 2022, the FCA also published its policy statement on D&I on listed company boards and executive committees, as discussed in this blog post. The focus of the UK regulators on D&I is therefore not new, and is part of the wider focus on ESG in financial services.
The…
