COMBATTING sexism and misogyny in the City of London seems to be at a standstill, according to an influential group of MPs.
Harriet Baldwin MP, the chair of The House of Commons Treasury Select Committee, who is investigating these issues, expressed her surprise at the evidence presented during the inquiry yesterday (15).
The inquiry was held with people representing banks, hedge funds, insurers and investors on what initiatives they have taken to tackle sexism and misogyny.
She noted that it appears “nothing has really changed since 2018, describing the situation as having “flatlined”.
In 2018, a review found a lack of women in executive roles across the finance sector.
Baldwin stressed concerns about the persistent “alpha male” culture in the City, asserting that the finance sector is struggling to address this discrimination against women.
Despite previous efforts, she believes there is still a significant gender pay gap within financial sectors, making it challenging for women to reach the highest positions.
In the 2022-23 financial year, the UK’s financial services sector reported an average gender pay gap of 22 per cent, the highest among sectors except for education.
This marks a slight increase from the previous year.
The Treasury Committee’s inquiry included input from various industry representatives.
While some, like Sarah Boon, managing director of UK Finance, acknowledged progress, Baldwin’s assessment of little change was challenged.
Boon highlighted an increased focus on flexible working and greater awareness of women’s issues like the menopause since 2018.
Karen Northey from The Investment Association echoed the difficulty of measuring progress on inclusion and diversity but mentioned a decrease in the pay gap within the investment management sector.
Yvonne Braun, a director of the Association of British Insurers, noted an increase in women’s representation at board level in the insurance and long-term savings sector.
Adam Jacobs-Dean, managing director of The Alternative Investment Management Association, admitted the hedge fund sector’s senior-level representation was not ideal, with only around 20 per cent being women.
He, however, suggested progress was being made and highlighted the industry’s potential to showcase successful women in the field.
The Equality and Human Rights Commission informed the committee that sexual harassment in the City remains prevalent, with non-disclosure agreements allegedly being used to silence victims.
The call for decisive action and clear guidance from regulatory bodies remains crucial in addressing these persistent issues.
This inquiry follows previous concerns raised by Baroness Morrissey in October, who called sexism endemic in the financial services industry.
She told parliamentarians there were “big pockets of no improvement whatsoever” when it came to gender parity in the Square Mile.
She advocated for independent reviews and stronger actions by regulatory bodies like the Financial Conduct Authority (FCA).
The FCA and the Prudential Regulation Authority (PRA), recently have published their consultation papers (CP) outlining proposed changes to the regulatory framework on Diversity and Inclusion (D&I).
The CP introduced several key elements that will be integrated into the existing regulatory framework, setting forth minimum standards while providing financial institutions with a clearer understanding of regulatory expectations.
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