The FCA has just adjusted its policy to focus more on diversity. The UK’s Financial Conduct Authority now requires some of its licensed companies to disclose whether or not they meet diversity goals concerned with the representation of women and ethnic minorities in high ranking positions.
The Diversity and Inclusion on Company Boards and Executive Management Policy Statement all listed firms must disclose in their annual financial reports whether or not they have met these diversity requirements. According to the FCA the new Listing Rules will make investors see the diversity in a company’s senior leadership levels, which is a part of the agency’s overall focus on diversity in the financial sector work space.
The diversity targets set by the British regulator require than at least% of a given company’s board member are of the opposite sex with at least one senior position also being held by a woman. Moreover, at least one board member must also be from an ethnic background (non-white).
Open-ended and shell companies wont have to abide by these new rules. However, the so-called closed-ended funds and sovereign companies will have to follow them.
The FCA will review the rules after three years to check how efficiently they have altered the work space.