Recommendations & Conclusions
8 items
6
Recommendation
Sixth Report - Sexism in the City
Deferred
First and foremost, it must be the responsibility of firms, boards and investors to drive improvements in diversity and inclusion, particularly given the clear evidence that 40 Sexism in the City more diverse firms achieve better results. We heard that many firm-level initiatives aimed at improving diversity and inclusion were …
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First and foremost, it must be the responsibility of firms, boards and investors to drive improvements in diversity and inclusion, particularly given the clear evidence that 40 Sexism in the City more diverse firms achieve better results. We heard that many firm-level initiatives aimed at improving diversity and inclusion were often not treated in the same way as other core business priorities. We encourage firms, boards and investors to put this right and ensure diversity and inclusion is given the same focus as any other core business priority. The lack of progress in the past five years cannot be tolerated indefinitely. The loss of potential is just too great.
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Government response AI summary
The government deferred a decision, stating it is currently working through 257 responses to its policy proposals on data collection and target setting, and will carefully consider the Committee’s recommendation as it formulates its policy response.
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HM Treasury
7
Recommendation
Sixth Report - Sexism in the City
Deferred
We welcome the focus of the PRA and FCA on diversity and inclusion in financial services, and agree they have a role to play. We have concerns, however, about their proposals to require firms to implement strategies, collect and report data and set targets. These requirements would be costly for …
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We welcome the focus of the PRA and FCA on diversity and inclusion in financial services, and agree they have a role to play. We have concerns, however, about their proposals to require firms to implement strategies, collect and report data and set targets. These requirements would be costly for firms to implement and have unclear benefits, while not capturing the many smaller firms that we have heard have some of the worst cultures and levels of diversity. We are also concerned that the requirements would be treated by many firms as another ‘tick-box’ compliance exercise, rather than necessarily driving the much-needed cultural change. Instead, we recommend that all financial services firms, particularly private businesses, hedge funds and other smaller firms, sign up to the voluntary Women in Finance Charter.
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Government response AI summary
The PRA and FCA state they will carefully consider the Committee's recommendations regarding their proposals for extensive data reporting and target setting, alongside other consultation responses, before finalising their policy. They do not address the recommendation for firms to sign up to the voluntary Women …
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HM Treasury
8
Recommendation
Sixth Report - Sexism in the City
Deferred
We recommend that the regulators drop their plans for extensive data reporting and target setting. In our view, a lack of diversity is a problem that the market itself should be able to solve without such extensive regulatory intervention. Boards and senior leadership of firms should take greater responsibility for …
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We recommend that the regulators drop their plans for extensive data reporting and target setting. In our view, a lack of diversity is a problem that the market itself should be able to solve without such extensive regulatory intervention. Boards and senior leadership of firms should take greater responsibility for improving diversity and inclusion given that it should lead to a competitive advantage in the development of talent. Firms that perform best on diversity and inclusion and have the best cultures should be able to benefit from the clear business advantages this provides, leaving those that perform badly in these areas to suffer the consequences for their reduced competitiveness and profitability. (Paragraph 48) Barriers facing women
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Government response AI summary
The PRA and FCA state they will carefully consider the Committee's recommendation to drop their plans for extensive data reporting and target setting, taking into account other consultation responses, before finalising their policy.
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HM Treasury
26
Conclusion
Sixth Report - Sexism in the City
Deferred
It is also important that firms tackle the ‘softer end’ of abusive behaviour and ‘microaggressions’ against women in order to create an inclusive culture in which even low-level bullying or harassment is seen as unacceptable. Firms should consider what steps they can take to achieve this, including the use of …
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It is also important that firms tackle the ‘softer end’ of abusive behaviour and ‘microaggressions’ against women in order to create an inclusive culture in which even low-level bullying or harassment is seen as unacceptable. Firms should consider what steps they can take to achieve this, including the use of appropriate training, such as unconscious bias training and active bystander training.
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Government response AI summary
The government acknowledges the importance of tackling abusive behaviour and microaggressions, stating they are currently prioritising work on non-financial misconduct and will set out their final policy after reviewing consultation responses.
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HM Treasury
27
Conclusion
Sixth Report - Sexism in the City
Deferred
It is vital that sexual harassment is viewed as a problem for everyone to solve, including men. Firms should do all they can to develop a culture in which men are encouraged and incentivised to act as allies and role models, and where men as well as women are encouraged …
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It is vital that sexual harassment is viewed as a problem for everyone to solve, including men. Firms should do all they can to develop a culture in which men are encouraged and incentivised to act as allies and role models, and where men as well as women are encouraged to challenge and report instances of sexual harassment and abuse.
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Government response AI summary
The government agrees on the importance of promoting diversity and inclusion in the financial sector and is prioritising work on non-financial misconduct, stating they will consider next steps and publish their final policy after reviewing consultation responses.
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HM Treasury
28
Conclusion
Sixth Report - Sexism in the City
Deferred
We have heard that whistleblowing processes within financial services firms are often ineffective at tackling bad behaviour or protecting those who report harassment. The Government is undertaking a review of whistleblowing laws, and we strongly recommend that the Government seeks to strengthen whistleblowing legislation to provide greater protection and support …
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We have heard that whistleblowing processes within financial services firms are often ineffective at tackling bad behaviour or protecting those who report harassment. The Government is undertaking a review of whistleblowing laws, and we strongly recommend that the Government seeks to strengthen whistleblowing legislation to provide greater protection and support to whistleblowers in sexual harassment cases.
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Government response AI summary
The government recognises the value of whistleblowers and notes existing legal protections under PIDA, stating they are currently reviewing the whistleblowing framework to inform future policy choices for its development and improvement.
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HM Treasury
29
Conclusion
Sixth Report - Sexism in the City
Deferred
The new Worker Protection Act imposes a new duty on firms to prevent sexual harassment. We hope that this legislation has the desired impact of incentivising firms to take greater action to prevent harassment in the workplace, and we will monitor closely its effectiveness at reducing cases of sexual harassment …
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The new Worker Protection Act imposes a new duty on firms to prevent sexual harassment. We hope that this legislation has the desired impact of incentivising firms to take greater action to prevent harassment in the workplace, and we will monitor closely its effectiveness at reducing cases of sexual harassment in financial services.
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Government response AI summary
The government stated that the EHRC is responsible for enforcing the new duty on employers and that they are already in contact and have a Memorandum of Understanding to work together and share information.
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HM Treasury
33
Recommendation
Sixth Report - Sexism in the City
Deferred
We recommend that the FCA launches an awareness campaign to publicise the availability of its whistleblowing line and clarify the circumstances in which it can be used, including that nothing in a non-disclosure agreement can prevent an individual from reporting harassment to the FCA. This could be part of a …
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We recommend that the FCA launches an awareness campaign to publicise the availability of its whistleblowing line and clarify the circumstances in which it can be used, including that nothing in a non-disclosure agreement can prevent an individual from reporting harassment to the FCA. This could be part of a wider campaign to map out the different options available to women suffering abuse or harassment in financial services. (Paragraph 165) 44 Sexism in the City
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Government response AI summary
The government states it is considering how to improve its whistleblowing approach and public communication, including whether a new publicity campaign would be helpful, while noting a similar campaign was launched in March 2021.
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HM Treasury