Britain’s financial regulators have scrapped plans for mandatory diversity, equity, and inclusion (DEI) rules in the financial sector, citing industry concerns over regulatory burdens. The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) announced they would not move forward with new DEI regulations after their 2023 consultation. Instead, they will rely on voluntary industry initiatives while awaiting potential legislative changes. 

The decision follows feedback from financial firms urging regulators to align their approach with existing initiatives rather than impose new compliance costs. While the PRA and FCA acknowledge that diversity enhances governance and risk management, they believe new rules could conflict with broader efforts to reduce regulatory burdens in the sector. 

PRA CEO Sam Woods stated, “There is a growing emphasis on reducing regulatory burdens while still achieving our objectives, and adding significant new requirements in this area could be seen as in tension with that approach.” 

In addition to shelving DEI regulations, UK regulators confirmed they will delay their review of the removal of the bankers’ bonus cap—highlighted in the Sexism and the City report—until the 2026/27 financial year. The delay gives firms time to adjust their remuneration structures following the cap’s removal. 

The UK’s decision mirrors a broader rollback of DEI policies in the United States. Under President Donald Trump’s second term, several executive orders have scaled back diversity-focused initiatives. In response, major Wall Street firms have also reduced their DEI commitments, sparking concerns over workplace inequality. 

Legal experts believe these shifts influenced the FCA and PRA’s decision. “The repeated pushback on publishing final rules makes this decision unsurprising,” said Noline Matemera, a partner at Osborne Clarke LLP. 

Separately, the FCA has abandoned plans to introduce a “public interest” test for disclosing investigations into financial firms. The proposal faced criticism from lawmakers, who labeled it as a “naming and shaming” tactic. Instead, the FCA will explore ways to enhance transparency by expanding disclosures on unregulated firms operating in financial markets. 

The regulatory retreat highlights the UK’s evolving approach to financial oversight, prioritizing industry-led initiatives while balancing ESG considerations and economic competitiveness. 

资料来源 

https://esgnews.com/uk-regulators-scrap-plans-for-mandatory-dei-rules-citing-industry-pushback/ 

https://uk.finance.yahoo.com/news/financial-watchdogs-ditch-dei-regulation-124353304.html  

https://www.theguardian.com/business/2025/mar/12/bank-of-england-decides-against-new-rules-on-improving-diversity-and-inclusion  

https://www.ft.com/content/84c5c6b8-95a5-4680-b047-04d95ff37825