On 25 September 2023 the UK’s Financial Conduct Authority (FCA) and Prudential Regulatory Authority (PRA) published consultation papers, setting out their proposals to boost diversity and inclusion to support healthy work cultures, reduce groupthink and unlock talent.
The FCA states that the measures also aim to enhance the safety and soundness of firms and improve understanding of diverse consumer needs, and that increased diversity and inclusion in regulated financial services firms can deliver better internal governance, decision making and risk management.
The FCA adds that the proposals include new rules and guidance to make clear that misconduct such as bullying and sexual harassment poses a risk to healthy firm culture. It says its guidance will help ensure firms can take decisive and appropriate action against employees for such behaviour.