Regulatory AlertsCP23/20: Diversity and inclusion in the financial sector – working together to drive change
The Financial Conduct Authority and the Prudential Regulation Authority propose a new regulatory framework requiring financial firms to collect, report, and disclose diversity and inclusion data while establishing D&I strategies. The proposals mandate that large firms recognize a lack of D&I as a non-financial risk and integrate non-financial misconduct considerations into fitness and propriety assessments, with smaller firms exempted to reduce regulatory burden. These measures aim to improve consumer outcomes, enhance market integrity, and unlock talent by fostering healthier workplace cultures and reducing groupthink across the UK financial sector.
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