Source · Select Committees · Treasury Committee
Sixth Report - Sexism in the City
Treasury Committee
HC 240
Published 8 March 2024
Recommendations
6
Deferred
Para 46
Urge financial firms to prioritise diversity and inclusion as a core business matter.
Recommendation
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 …
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Government Response 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.
HM Treasury
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7
Deferred
Para 47
Encourage all financial services firms, especially smaller ones, to sign up to the Women in Finance Charter.
Recommendation
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 …
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Government Response 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 in Finance Charter.
HM Treasury
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8
Deferred
Cease regulator plans for extensive data reporting and diversity target setting requirements.
Recommendation
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 …
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Government Response 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.
HM Treasury
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33
Deferred
Launch an awareness campaign to publicise FCA whistleblowing line and clarify its use.
Recommendation
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 …
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Government Response 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.
HM Treasury
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Conclusions (4)
26
Conclusion
Deferred
Para 158
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 …
Government Response 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.
27
Conclusion
Deferred
Para 159
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 …
Government Response 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.
28
Conclusion
Deferred
Para 160
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 …
Government Response 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.
29
Conclusion
Deferred
Para 161
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 …
Government Response 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.