In answer to the increasing insistence from investors for greater transparency from the companies they invest in, the Financial Conduct Authority (FCA) is demanding that UK-listed firms comply with its required inclusion and diversity targets or explain why they have failed to do so.
Executive Director of Markets for the financial watchdog, Sarah Pritchard, commented:
“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.”
UK consumers seeking to put their savings into British businesses often seek out expert investment advice in Chester, Manchester and other major cities. Wealth managers are often relied upon for an unbiased opinion of investments and can offer expert insight on the potential rewards of individual assets.
The FCA recently finalised its rules regarding reporting information, listing its diversity targets that apply to both executive management and company boards.
Under the new diversity targets disclosed, at least 40 per cent of a company board must be made up of women. Additionally, at least one member of the senior board – such as the chairman, CEO, CFO or senior independent director – must also be a woman. Finally, at least one board member must be part of an ethnic minority (this excludes white ethnic groups).
If companies cannot meet these set targets, they must now explain why to the FCA. Companies are allowed to decide the best way to collect this data from employees to show the FCA they are meeting its targets.