The Financial Conduct Authority (FCA) does not believe the financial services sector is diverse and inclusive and emphasised that diversity and inclusion is a good thing for firms and the markets they serve.
It also highlighted the key objectives from its work building a more diverse and inclusive industry, adding that getting wider representation was not just “a numbers game”.
Speaking at the Group for Autism, Insurance, Investment and Neurodiversity (GAIN) expo, FCA senior adviser for equality Georgina Philippou said: “We have two starting points: the financial services sector is not diverse and inclusive; and diversity and inclusion is a good thing for firms and the markets they serve.”
Philippou (pictured) highlighted that data published over the last year highlighted the industry was making slow progress in becoming more diverse and inclusive, and in some cases such as gender pay gaps, was actually reversing.
“All of these facts and figures run counter to the literature which says diversity and inclusion is a good thing for financial services firms and their customers and market – that it can have beneficial outcomes,” she added.
‘Not just for it’s own sake’
Last year the FCA began its process of introducing rules and guidance around diversity and inclusion to improve the industry with a discussion paper.
Philippou confirmed that a formal consultation paper will be published this summer with the final policy statement set for late 2022 or early 2023.
“The outcomes we want to see from this work are clear and simple. We do want to see more diverse representation in regulated firms, but not just for its own sake – this isn’t a numbers game,” Philippou continued.
“Through inclusion and diversity of thought we want to see the benefits of greater representation feed through into better consumer markets and outcomes, into products and services which are designed for a diverse range of consumers and which reach them in a fair and accessible way.
“And we want to see better data collection and more transparency of data, because without the data we are nothing when it comes to diversity and inclusion.
“So our key message is we take D&I seriously and we expect regulated firms to so too.”
She added that firms should look at the policies which came out of the FCA’s initial discussion paper and ask if those were to be introduced, how ready would your firm be?
