New FCA rules will boost disclosure of diversity on boards and executive committees

The FCA have finalised their rules requiring listed companies to report information and disclose against targets on the representation of women and ethnic minorities on their boards and executive management.

The FCA has published their final policy decision for proposals set out in CP 21/24 ‘Diversity and inclusion on company boards and executive committees’. These measures are intended to improve transparency on the diversity of company boards and their executive management for investors and other market participants. The finalised rules will require all listed companies (premium and standard) to report information and disclose against targets on the representation of women and ethnic minorities on their boards and audit, remuneration and nominations committees, making it easier for investors to see the diversity of their senior leadership teams.

The FCA has set the following positive diversity targets for listed companies that will be introduced on a ‘comply or explain’ basis, with companies allowed to decide how best to collect data from employees to show they are meeting the targets:

  • at least 40% of the board should be women;  
  • at least one of the senior board positions should be a woman (ie the Chair, CEO, CFO or Senior Independent Director (SID)); and 
  • at least one member of the board should be from an ethnic minority background excluding white ethnic groups. 

The rules will apply to listed companies for financial accounting periods starting on or after 1 April 2022.

Read more 

Published 21 April, 2022

With less than one month to go, now is the time to book your conference ticket! 🗓 Tue 21 June ⏰ 08:00 - 18:00 🎟… twitter.com/i/web/status/1…

Sponsor message