Free Speech Group Warns Against Proposed Diversity Rules for Financial Firms
The Free Speech Union expressed concerns over the proposed new regulatory framework on Diversity and Inclusion (D&I) for financial institutions, stating that it will “embed politically contentious diversity and inclusion policies deeper” and have “a chilling effect on the free speech of those who disagree with the ideology underpinning those policies,” such as gender identity ideology and critical race theory.
The consultations were held by financial regulators the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA) between Sept. 25 and Dec. 18 last year.
The proposed rules would require firms to develop a D&I strategy, collect, report, and disclose data against certain characteristics, and set targets to address under-representation.
FSU General Secretary Toby Young said the group does not share the confidence with the PRA, who said the proposed rules don’t provide a basis for debanking over opinions and beliefs.
Mr. Young also expressed concerns over the evolution of D&I concepts and definitions, and questioned the plan to allow firms to choose between sex or gender for their mandatory reporting.
In 2022, the FCA added diversity quotas to its “comply or explain” reporting regime, which requires companies to ensure at least 40 percent of the board are women and have members from non-white minority ethnic backgrounds.
Two statutory advisory panels warned the regulator last year that their “comply or explain” approach to the corporate governance and stewardship codes have become too rigid and turned into “comply or else,” harming the UK’s competitiveness in corporate investment.
