Clifford Chance
FCA and PRA Consultation on Diversity and Inclusion in the financial services sector
5 October 2023
The FCA and PRA (the 'regulators') have published their much anticipated consultation papers (PRA CP 18/23 and FCA CP23/20) on a package of measures to promote diversity and inclusion (D&I) in the financial services sector with a view to achieving healthier firm cultures, reducing group think, unlocking new talent and addressing consumer needs. The regulators clearly regard some of the proposed steps as significant interventions.
Key Proposals
- The integration of non-financial misconduct considerations into the regulators' rules on conduct and fitness and propriety assessments and the guidance on the suitability threshold conditions;
- An annual obligation to report employee numbers;
- A requirement to set targets to address underrepresentation at Board, senior leadership and general workforce level;
- An annual D&I reporting obligation;
- A requirement to publish D&I strategies;
- Individual accountability under the SMCR regime and remuneration alignment (PRA only)
1. FCA and PRA Consultation on Diversity and Inclusion in the financial services sector: an Overview
2. FCA and PRA Consultation on Diversity and Inclusion in the financial services sector: Non-Financial Misconduct
3. FCA and PRA Consultation on Diversity and Inclusion in the financial services sector: D&I Strategies, Reporting, Disclosure Obligations and Targets.
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