THE BRITISH financial authorities issued guidelines today (25) for financial firms to follow when addressing sexual harassment and bullying in the workplace.
The Financial Conduct Authority (FCA) and the Bank of England’s Prudential Regulation Authority (PRA) said their proposed measures will boost inclusiveness and diversity to encourage positive workplace environments, lessen groupthink, and unleash talent.
They also added additional demands for large banks and insurers to set targets for increasing diversity and inclusion.
Proposals include requirements to:
The initiatives also aim to create better awareness of various customer requirements and the safety and soundness of businesses.
FCA chief executive Nikhil Rathi said: “For UK financial services to be competitive and for the companies in it to be well run with healthy work environments, it’s vital they attract, retain and promote the best talent. The data suggests this isn’t happening. Our proposals will encourage the largest firms to put in place plans and report against their delivery.
“UK financial services has long been a magnet for best-in-class talent globally. Increasing levels of diversity within firms can help attract and unlock talent, supporting the sector’s international competitiveness.
“We have taken a lead among regulators in taking a clear stance that non-financial misconduct, such as sexual harassment, is misconduct for regulatory purposes. We’re strengthening our expectations on how the firms we regulate consider such misconduct when deciding whether someone is fit and proper to work within the industry.”
New guidelines and procedures are included in the plans to make it clear that behaviour like bullying and sexual harassment endangers a positive workplace culture.
Better internal governance, decision-making, and risk management may be produced by regulated financial services businesses if diversity and inclusion are increased.
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