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UK regulatory update – Diversity in Financial Services policy statement

UK regulatory update – Diversity in Financial Services policy statement

Background

  • On 7 May 2021, the Financial Conduct Authority (FCA) published on its website – as did other UK regulators – the third six-monthly “Regulatory Grid” from the Financial Services Regulatory Initiatives Forum
  • Certain items are labelled as “key initiatives in the regulatory landscape” to get further emphasis – that includes the item summarised in this text
  • This Regulatory Grid sets out the regulatory pipeline for the next 24 months and enables firms to plan more accurately for forthcoming initiatives
  • The Regulatory Grid is published twice a year to help manage the operational impact on firms of implementing initiatives from the Forum members
  • This guidance is important for all organisations within UK financial services

Summary

  • The Financial Services Regulatory Initiatives Forum has added an initiative for “diversity in financial services” – there is also a Diversity and Inclusion (D&I) initiatives in the Pensions chapter
  • This initiative is being led jointly by the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA)
  • The PRA and FCA recognise the value of identity and cognitive diversity in improving the quality of decision-making, leading to better consumer outcomes and statistically significant selection of safety and soundness
  • To support these efforts, the FCA and PRA will be issuing a joint Discussion Paper on Diversity and Publication of a Consultation Paper Inclusion (planned for June 2021), and a data request in in Q1 2022 and Policy Statement

About the Financial Services Regulatory Initiatives Forum

The Financial Services Regulatory Initiatives Forum was launched to strengthen coordination between members.  It is made up of representatives of the Bank of England, Financial Conduct Authority, Prudential Regulation Authority, Payment Systems Regulator, the Competition and Markets Authority, the Information Commissioner’s Office, The Pensions Regulator and the Financial Reporting Council.  HM Treasury is an observer member.

Timeline with relevant dates to be logged on regulatory calendar

  • Publication of a Discussion Paper in June 2021
  • One-off diversity data request to a statistically-significant selection of PRA and FCA-regulated firms in mid-2021
  • Publication of a Consultation Paper in Q1 2022 and Policy Statement in Q3 2022

Next steps

All firms need to address requirements to comply with relevant regulatory supervisors.

If anyone has specific questions or needs any advice, contact our specialists.