Overview

• The Bank of England's Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) have decided not to implement proposed diversity and inclusion rules for financial firms.
• The paused rules would have required firms to report diversity data, set inclusion targets, and link them to senior management pay, which drew criticism for adding regulatory burdens.
• Regulators highlighted that the UK government's Employment Rights Bill already includes measures addressing gender, ethnicity, and disability pay gaps, reducing the need for additional rules.
• The decision aligns with broader government efforts to reduce red tape on businesses and prioritize economic growth, as emphasized by Chancellor Rachel Reeves.
• This move comes against the backdrop of a global rollback of DEI initiatives, including actions in the US under President Donald Trump, and criticism from UK political figures like Kemi Badenoch and Nigel Farage.