The Bank of England (BoE) and the UK Financial Conduct Authority (FCA) have just published a Discussion Paper entitled "Diversity and inclusion in the financial sector – working together to drive change." The regulators argue that efforts to promote gender and ethnic diversity in the country’s financial sector have been insufficient, to date, and warn that firm leadership may face mandated pay cuts if they fail to report on the degree of diversity among their employees.
In the paper, the regulators state that they are also considering expanding the FCA's "fit and proper" assessment scheme so as to address diversity, and that they may adjust guidance regarding non-financial misconduct to include sexual harassment, bullying, and discrimination. Additionally, the regulators propose that senior management salaries be linked to meeting diversity goals.
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