In a move that has been awaited by professionals in the financial sector, both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) made public their proposals to introduce a regulatory framework for diversity and inclusion in the financial sector on 25 September 2023. The information comes from statements published by Hogan Lovells.
The FCA’s propositions, developed as CP23/20, have been created alongside similar advancements from the PRA, delineated as PRA CP18/23. These two sets of proposals have been designed with a view to address and enhance diversity and inclusion outcomes among regulated firms. They are a response to the growing recognition within the industry of the urgent need to improve such outcomes.
The emergence of these proposals signals a potentially significant shift in regulatory policy. The policies aim to make the culture within regulated firms more inclusive and equal, which is believed to have benefits that extend to the financial integrity of those firms.
The impact and implications of such regulatory changes on the operations of the financial sector will be closely watched by the industry and further updates will be covered as they become available.