The Financial Conduct Authority (“FCA”) has its finalised 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 new rules aim to make it easier for investors to see the diversity of their senior leadership teams.
The targets which the FCA expect include:
- At least 40% of the board should be women.
- At least one of the senior board positions (Chair, Chief Executive Officer (CEO), Chief Financial Officer (CFO) or Senior Independent Director (SID) should be a woman.
- At least one member of the board should be from an ethnic minority background excluding white ethnic groups (as set out in categories used by the Office for National Statistics).
The rules will apply to listed companies for financial accounting periods starting from 1 April 2022. The FCA will review the rules in 3 years’ time to make sure they are working and to check if the diversity targets are still appropriate.