Written Question: Regulating for Diversity and Inclusion in the City

Lord Moylan: To ask His Majesty's Government what is the policy of (1) the Treasury, and (2) the Government Equalities Office, on the consultations being conducted by the Financial Conduct Authority and the Prudential Regulation Authority on new diversity and inclusion reporting requirements for financial services firms; and what assessment they have made of whether those proposals are in line with their policy on increasing economic growth.

Financial Secretary to HM Treasury (Lord Livermore): The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) are non-governmental bodies which are independent from the Treasury and have broad powers to make rules in order to advance their statutory objectives. The regulators are required by legislation to carry out their general functions, which include rule-making, in a way that advances their competitiveness and growth objectives.

In line with statutory requirements, the FCA and PRA have included in their consultations an explanation of the compatibility of the proposed rules with their duties, including consideration of the competitiveness and growth objectives.