FCA moves to force firms to 'comply or explain' diversity targets

Regulator proposes new diversity disclosure requirements

The Financial Conduct Authority (FCA) has proposed new rules forcing listed companies to disclose diversity information about boards and executive teams, including the introduction of “comply or explain statements” on progress in achieving gender and ethnic minority representation targets.

In a consultation on changes to its listing rules published today (28 July), the FCA proposed the introduction of annual publications to ensure any existing disclosure on diversity policies addresses key board committees and also considers broader aspects of diversity. This could include considerations of ethnicity, sexual orientation, disability, lower socio-economic background and other diversity characteristics. Earlier in July, the FCA, the PRA and Bank of England issued a joint discussion paper exploring how they can improve diversity and inclusion in the financial services secto...