Do you meet the FCA's new targets for gender and ethnic diversity at boardroom level?
A recent paper announced that the Financial Conduct Authority will ask listed companies to explain their reasons if they are unable to meet new targets it has set for gender and ethnic diversity at boardroom level.
The FCA will put pressure on UK listed dealer groups to address the make up of their most senior management teams. What are the requirements?
1. At least 40% of the board of a listed company to be women.
2. At least one member of the board should be from an ethnic minority background.
3. At least one of the senior board positions, such as chair, chief executive, chief financial officer or senior independent director, should be a woman.
From the April 2022 financial year they must include a statement in their annual financial report setting out whether they have met these specific board diversity targets on a ‘comply or explain’ basis, as at a chosen reference date within their accounting period and, if they have not met the targets, why not.