- Employment law for employers
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The Financial Conduct Authority (FCA) has published a policy statement confirming its intention to adopt previously-announced proposals relating to diversity at board level of listed companies.
1 minute read
Published 22 April 2022
Almost all UK and overseas companies which are listed on a regulated market in the UK will be required to ‘comply or explain’ in relation to their adherence to the target measures outlined in the rules. Amongst the key targets to be adopted:
Affected companies must disclose their efforts to achieve the targets and other relevant data in their annual financial report.
The new rules will be in effect from the financial year starting in April 2022, although earlier voluntary reporting is encouraged. The FCA has decided not to extend reporting requirements to other categories such as sexual orientation or socio-economic background for the time being, although again firms are encouraged to report voluntarily on wider diversity measures in an appropriate manner.
The measures are designed to improve transparency for investors on the diversity of boards and executive management and – indirectly through investor pressure – to encourage companies to develop and promote a diverse workforce at the most senior levels.
Any company that fails to meet the targets set by the FCA must explain why in their annual financial report.
Related content
Shorter Reads
The Financial Conduct Authority (FCA) has published a policy statement confirming its intention to adopt previously-announced proposals relating to diversity at board level of listed companies.
Published 22 April 2022
Almost all UK and overseas companies which are listed on a regulated market in the UK will be required to ‘comply or explain’ in relation to their adherence to the target measures outlined in the rules. Amongst the key targets to be adopted:
Affected companies must disclose their efforts to achieve the targets and other relevant data in their annual financial report.
The new rules will be in effect from the financial year starting in April 2022, although earlier voluntary reporting is encouraged. The FCA has decided not to extend reporting requirements to other categories such as sexual orientation or socio-economic background for the time being, although again firms are encouraged to report voluntarily on wider diversity measures in an appropriate manner.
The measures are designed to improve transparency for investors on the diversity of boards and executive management and – indirectly through investor pressure – to encourage companies to develop and promote a diverse workforce at the most senior levels.
Any company that fails to meet the targets set by the FCA must explain why in their annual financial report.
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Specialising in Employment law for employers, Digital and Employment law for employees
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