In a move marked with careful consideration and anticipation, the UK Financial Conduct Authority (FCA) and the UK Prudential Regulation Authority (PRA) have progressed on their direct undertakings to enhance diversity and inclusion within the financial services sector. The two regulatory bodies have recently made public their Consultation Papers, which propose fresh rules and guidance on the matter.
The Consultation Papers follow a joint Discussion Paper published by both the FCA and PRA in 2021. The newly proposed rules, while still under consultation, indicate progressive momentum. Given the current trajectory, law professionals should anticipate the final set of rules to be published in 2024 and become effective 12 months from then.
While instigating comprehensive changes and fostering wider diversity and inclusion within any industry is invariably a complex process, the steps BT the FCA and PRA are indicative of the overarching push for more inclusive norms, both within the financial services sector, and on the larger business canvas.
The anticipation for the final rules is not merely academic. Cascading changes in compliance requirements – both in the scope of their application and in the robustness of their mandate – can be expected as a result. These are especially pertinent for those in legal professions and roles with compliance focus within the industry.
Read more about this development here.