U.K. financial regs pressure firms to step up D&I considerations
The U.K.’s financial regulators set out proposals to ensure firms treat nonfinancial misconduct, such as bullying, racist behavior, and sexual harassment, as strictly as other regulatory offenses.
As part of their efforts to boost diversity and inclusion (D&I) in the workplace, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) released a consultation document on Sept. 25 to assert nonfinancial misconduct poses a clear risk to financial firms’ governance and culture, as well as their ability to attract and retain key people.
The regulators believe unhealthy workplaces hamper efforts to improve D&I, reduce groupthink, and unlock talent because people will stay away from or leave the profession. They want firms to consider lack of D&I as a nonfinancial risk.