Source · Select Committees · Treasury Committee
Sixth Report - Sexism in the City
Treasury Committee
HC 240
Published 8 March 2024
Government response
Fifth Special Report - Sexism in the City: HM Treasury, Prudential Regulation Authority and Financial Conduct Authority Responses to the Committee’s Sixth Report · published 14 May 2024
Recommendations & Conclusions
1
Conclusion
Acknowledged
Financial services culture remains a significant barrier for women, hindering progress on harassment.
Conclusion
Our inquiry has revealed incremental improvements for women working in financial services on certain metrics, such as the proportion of women holding senior roles. Overall, there has been a disappointing lack of progress on sexual harassment and bullying, including serious …
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Government Response Summary
The government welcomed the report and agreed with the Committee's observations about the importance of diversity and inclusion, and the slow progress towards gender balance, but committed to no new specific actions.
HM Treasury
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24
Conclusion
Acknowledged
Para 156
Prevalence of sexual harassment in financial services is unacceptable
Conclusion
We have been appalled by testimonies we have received about the prevalence of sexual harassment in the financial services industry, including from some of the brave women who told us about their experiences at our own private roundtable event. Although …
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Government Response Summary
The government welcomes the Committee's report, agrees that regulators have an important role in promoting diversity and inclusion, and is prioritizing work on non-financial misconduct, including sexual harassment and bullying.
HM Treasury
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25
Conclusion
Acknowledged
Adopt zero-tolerance to sexual harassment, ensuring thorough investigations and appropriate consequences
Conclusion
Firms need to adopt a zero-tolerance approach towards sexual harassment and abuse and take concrete action to embed this approach within their organisations. Impunity for perpetrators, who are often well known in their organisations for serial offending, must end. As …
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Government Response Summary
The government welcomes the report, agrees on the regulators' role in promoting diversity and inclusion, and is prioritizing work on non-financial misconduct, including sexual harassment and bullying, while considering consultation responses to their D&I proposals.
HM Treasury
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30
Recommendation
Acknowledged
Para 162
Clarify enforcement collaboration between EHRC and FCA on Worker Protection Act
Recommendation
Given the potential overlap between the aims of the Worker Protection Act, which will be enforced by the Equality and Human Rights Commission (EHRC), and the proposals by the Financial Conduct Authority (FCA) on handling sexual misconduct in financial services, …
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Government Response Summary
The government states it has a Memorandum of Understanding with the EHRC and will continue to work together and share information to address common interests, but does not outline a specific plan for clarifying enforcement of the Worker Protection Act.
HM Treasury
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31
Conclusion
Acknowledged
Para 163
Regulators' powers constrained in tackling non-financial misconduct
Conclusion
There is an important role for regulators to play in ensuring that firms tackle sexual harassment. We welcome the proposals by the Financial Conduct Authority and by the Prudential Regulation Authority to strengthen their regimes for tackling non-financial misconduct, including …
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Government Response Summary
The government agrees with the committee on the important role regulators play in promoting diversity and inclusion, and is currently reviewing consultation responses from various stakeholders before publishing its final policy.
HM Treasury
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32
Conclusion
Acknowledged
Para 164
Limited awareness of FCA whistleblowing line hinders effective reporting of harassment.
Conclusion
There is limited awareness of the FCA’s whistleblowing line or how it works, and we believe there is scope to enhance its effectiveness and reduce the ‘fear factor’ victims of harassment face when reporting abuse.
Government Response Summary
The government acknowledges the limited awareness and 'fear factor' around the FCA's whistleblowing line, stating they are currently considering improvements to their approach and communication, including the potential for a publicity campaign.
HM Treasury
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