FCA softens stance on D&I rules: A welcome relief for smaller firms?

Sahar Nazir
clock • 6 min read

The Financial Conduct Authority (FCA) has decided not to proceed with its previously proposed diversity and inclusion (D&I) rules, which would have mandated data collection and target-setting for regulated firms. The regulator’s recent letter to the Treasury Select Committee (TSC) confirms that, while D&I remains a priority, the focus will shift away from prescriptive data reporting.

This decision comes after concerns were raised about the effectiveness of data collection in driving meaningful cultural change, as well as the potential compliance burden on firms—particularly smaller ones. While some in the industry may welcome the reduced regulatory pressure, others question whether a softer approach will weaken efforts to improve diversity across financial services. A strategic withdrawal? Under its initial proposals, outlined in Consultation Paper CP23/20, the FCA had aimed to introduce formal D&I strategies, diversity targets, and workforce composition reporting ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

A 1000-day wait: Pension transfer delays demand urgent reform, advisers say

A 1000-day wait: Pension transfer delays demand urgent reform, advisers say

Transfer delays highlight need for ten-day Pension Switch Guarantee

Sahar Nazir
clock 29 April 2025 • 2 min read
L&G drops fracture cover in critical illness and income protection overhaul

L&G drops fracture cover in critical illness and income protection overhaul

Increased pay out amounts

Jaskeet Briah
clock 29 April 2025 • 3 min read
Advisers could add 20 more clients annually with AI support

Advisers could add 20 more clients annually with AI support

Early adoption of artificial intelligence tools is boosting adviser efficiency

Sahar Nazir
clock 28 April 2025 • 2 min read