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Regulator Sets Diversity Targets for UK-listed Firms

The Financial Conduct Authority (FCA) has published its final rules requiring UK-listed firms to report gender and ethnic diversity levels on boards and executive committees. The ‘comply-or-explain’ targets, designed to provide investors with greater visibility on the diversity of senior leadership teams at investee firms, apply for accounting periods starting 1 April 2022, and will be reviewed in three years’ time. “As investors pay increasing attention to diversity at the top of the companies they invest in, enhancing transparency at board and executive management level will help hold companies to account and drive further progress,” said Sarah Pritchard, the FCA’s Executive Director of Markets.

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