The industry is “still old fashioned and there is a lot more that we could be doing to engage with clients” on LGBTQ+ issues, Castlefield partner Olivia Bowen has said.
Speaking on a special edition episode for Pride Month on PA TV, partners Bowen and Ita McMahon explained Castlefield's approach to diversity and inclusion, covering internal policies, adviser-client engagement, and stewardship with investee companies.
Castlefield, which calls itself the "thoughtful investor," conducts a firm-wide D&I survey every three years to better understand the composition and experiences of its workforce. The latest results showed 13% of respondents identify as not heterosexual, while 93% said there is a strong culture of diversity within the firm, compared to 83% across wider financial services.
Bowen said this internal work must be mirrored in client-facing practices, noting that LGBTQ+ clients may not always explicitly disclose their sexual orientation to advisers. "It's about making sure you create a safe environment where clients feel they can have these conversations, if they want to," she said.
Bowen highlighted examples such as fertility and family-building costs for same-sex couples, and estate planning where clients may not have children and need to consider alternative beneficiaries.
"These are the kinds of nuances financial planners must be aware of," she added. "And it starts by avoiding assumptions, like asking someone if they're married or assuming their partner is of the opposite sex. There's a large amount of unconscious bias we all carry."
McMahon noted that the firm incorporates diversity criteria into stewardship activities, using guidance from initiatives such as the Hampton-Alexander Review (on gender diversity) and Parker Review (on ethnic board representation). "These are government-backed, well-researched frameworks that help take away subjectivity when we're engaging with companies," she explained. "It's still difficult for companies to collect data on protected characteristics like sexual orientation or disability, especially in certain jurisdictions," said McMahon.
Ultimately, both partners agreed that financial advisers play a critical role in creating inclusive, safe client relationships. "Society is starting to understand there's not just one or two ways of living your life," Bowen said. "Advisers need to reflect that reality in how they communicate and plan with clients."
