Financial services industry bodies call for greater clarity on FCA D&I proposals

investmentweek.co.uk:

Representatives from the Investment Association, UK Finance, the Alternative Investment Management Association and the Association of British Insurers said the regulator's D&I proposals had been welcomed by members | Credit: iStock

In September, the Financial Conduct Authority and Prudential Regulation Authority unveiled a consultation paper setting out proposals to boost D&I, noting the diversity standards will be «flexible» and «proportionate», with greater requirements placed on larger companies.

These will include the development of a D&I strategy setting out how companies will achieve their objectives and goals; the collection, reporting and disclosure of data against certain characteristics; and the setting of targets to address underrepresentation.

In a Treasury Committee hearing on Wednesday (15 November), representatives from the Investment Association, UK Finance, the Alternative Investment Management Association and the Association of British Insurers said the proposals had been welcomed by members.

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Adam Jacobs-Dean, global head of markets, governance and innovation at AIMA, told MPs that its members, mainly hedge funds, had embraced the reality the regulator is now focusing more on non-financial misconduct, which he deemed «absolutely critical».

However, he said there is more that can be done in articulating what the proposals mean in practice, arguing it is «not helpful to leave it entirely to firms to try and navigate something that is not necessarily always clear cut».  

Karen Northey, director of corporate affairs at the Investment Association, said its members support the FCA's direction of travel. However, she noted the association