Policy proposals
Meanwhile, FCA cross-cutting policy manager, Peter Curtis-Valino, gave an overview of the joint policy proposals from the FCA and PRA.
He stated that large firms, those with 251 or more employees, would be subject to the full regulatory regime, including elements that smaller firms do not need to apply.
Large firms would need to set targets for themselves to address underrepresentation across a range of characteristics.
He also said the FCA is proposing that firms would have the freedom to prioritise the areas within their own firms where the most progress is needed, and that’s where they could make the biggest difference.
“We would normally expect firms to set at least one target for each board, senior leadership, and employee populations as well to drive progress across the firm as a whole,” Curtis-Valino stated.
Additionally, for large firms the FCA proposed to provide additional guidance to make clear that lack of D&I is a type of non-financial risk.
Curtis-Valino also said the FCA is proposing to extend its guidance on the suitability threshold conditions to make clear it will consider, for example, offences relating to some of the demographic characteristics such as sexual or racially motivated offences.
However, he indicated that there is “still a way to go before the regime is fully up and running” and that the rules wouldn’t come into effect until 2025, 12 months after the policy statement is published.
tom.dunstan@ft.com
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