There are countless benefits to having a diverse and inclusive workplace. Meaningful diversity and inclusion (D&I) improves culture and decision-taking within firms, so reducing the risk of firm failure, financial instability and harm to consumers.
What is the regulatory perspective?
The Financial Conduct Authority (FCA) in the UK is continuing to reinforce their commitment to meaningful D&I as means of improving governance and culture in financial services firms. Their latest review Understanding approaches to D&I in financial services, published 12th December 2022, indicates that while firms are taking D&I seriously, there is not enough progress in this area.
For example, their findings included:
- Firms lack clear articulation of purpose, actions and why D&I initiatives are so important
- Many D&I strategies focus more on improving representation at senior leadership levels only
- Firms are not sufficiently capitalising on data
- Firms not seeing D&I as a cultural issue, which is a fundamental blocker to success
Progressing your D&I journey
If the above findings resonate with you, please reach out for further information and support on how your D&I initiatives could be further supported and progressed, such as:
- Alignment of your D&I strategy to wider Purpose and values
- Assessing implementation of your D&I strategy
- Consideration for additional demographic dimensions as part of D&I data collation, and how this supports your strategy
This promises to be an important area of regulatory focus going forward. Additionally, and crucially, progressing your D&I ambition is good for business; for both internal and external stakeholders.
Please find further detail in our attached article.