The Chartered Insurance Institute and the Association of British Insurers have both said they support the broad and non-prescriptive approach taken by the Financial Conduct Authority in relation to developing and implementing regulation to support equality, diversity and inclusion.

During a recent CII and ABI webinar, Dr Matthew Connell, director of policy and public affairs at the CII, said: “I think that the FCA sees the real heart of inclusivity and diversity, and how that can make a real difference for consumers and people working in financial services.

“In 2022, for example, the FCA had a policy statement on the Consumer Duty where it says ‘diversity is a lens that can help firms to better understand and meet the needs of their customers, including those in vulnerable circumstances’. We see significant practical benefits in firms exploring customer’s needs from different perspectives.

“And so, I think that's really the encouragement in the Consumer Duty towards a culture of curiosity and learning, and applying specific solutions for specific consumers, especially through the lens of vulnerability, is at the heart of what the FCA is doing.”

He continued: “If we only look at the rules the FCA is proposing, and not at the cultural change that they're challenging us to make, I think that means that we as a profession would be missing out on something very fundamental, and it would invite, actually, the wrong kind of regulation, which is following up with more and more waves of prescriptive regulation that tends to be more one-size-fits-all.”

Janice Fordjour, policy adviser for prudential regulation at the ABI, added: “The ABI is very supportive of the efforts of the FCA and PRA and their work to improve diversity and inclusion across the financial sector. We welcome the proposals set out in the regulators’ consultations that would encourage firms to collect employee data across a wider range of DEI considerations – experience shows us that what gets measured, gets managed.”