|  Updated: 

UK listed firms must have at least one woman in a senior position, City watchdog says

By:

Add as a preferred source on Google
The FCA said that 83 per cent of the firm's DB scheme transfer advice "failed to comply with its minimum required standards, and customers risked financial loss as a result of the poor advice they received".
The FCA said that 83 per cent of the firm's DB scheme transfer advice "failed to comply with its minimum required standards, and customers risked financial loss as a result of the poor advice they received".

The boards of UK listed companies should employ at least one non-white board member and one woman in a senior role, according to new diversity targets put forward by the Financial Conduct Authority (FCA).

Two-fifths of board members should be women, and at least one senior board position – including chief executive, chair, or chief financial officer – should be filled by a woman, the City watchdog said.

UK listed companies should also employ at least one “non-white” ethnic minority on its board, the regulator said.

The new rules, which apply to almost all listed companies reporting accounts for the financial year starting in April 2022, have been introduced on a “comply or explain” basis, meaning listed companies will required to meet the targets or instead explain any divergences.

The new rules come after the FCA set out its plans to bring in new diversity targets last July, with a view to boosting transparency and encouraging “broader consideration of diversity at board level”.

The rules apply to almost all UK and overseas companies that are listed on regulated markets in the UK, and will require firms to start reporting diversity in their boardrooms by the start of next year.

FCA executive director of markets Sarah Pritchard said: “As investors pay increasing attention to diversity at the top of the companies they invest in, enhancing transparency at Board and executive management level will help hold companies to account and drive further progress.”