UK Finance Hiring Practices to Shift with New Diversity Code

"The regulator sets the mandatory baseline, we can look to aspirational goals."

The CFA Institute, a global body for financial sector qualifications, has introduced its first-ever diversity, equity, and inclusion code in the United Kingdom. 

This development comes at a time when regulators are exerting pressure on the industry to enhance representation of women and ethnic minorities within their workforce.

Having already implemented a similar code in the United States and Canada, the CFA Institute has witnessed over 160 investment organizations, managing approximately $18.3 trillion in assets, voluntarily adopting the code. 

The UK version of the code is tailored to local laws and practices, encompassing six key principles. These principles focus on expanding the pool of diverse talent, promoting diversity through hiring practices, ensuring that promotions and retention contribute to diversity progress, and measuring and reporting on advancements.

Sarah Maynard, Global Senior Head, external diversity, equity and inclusion, at the CFA Institute said, “The regulator sets the mandatory baseline, we can look to aspirational goals.”

With around 12,000 UK members among its 200,000 global total, the CFA Institute aims to have UK finance firms sign the code. Signatories will provide annual confidential progress reports. The Institute will publish industry-wide data once enough firms sign on.

The new code bolsters existing UK initiatives like the government-backed Women in Finance charter. But progress on boosting women in senior roles has stagnated, said a 2022 government review. Regulators now propose mandatory diversity targets for large banks and insurers.

Sarah Maynard also highlighted that the code addresses areas that are currently not covered by the Financial Conduct Authority, such as equity and fair access to opportunities for individuals from less privileged backgrounds or education. 

By encouraging finance professionals to embrace the diversity code, the industry takes a significant step towards creating inclusive workplaces that reflect the diverse society we live in.