The British finance industry, despite progress in recent years, is still predominantly male. As the Alpha Female Report 2023 by Citywire reveals, only 12% of fund managers are women. According to Deloitte, women hold just 19% of leadership roles in banking, capital markets, and payments. More than 100 FTSE-250 companies either have no minority representation on their boards or are unwilling to disclose such information.

The regulatory authorities, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), aim to change this situation. Their proposed measures include clarifying that bullying and sexual harassment pose risks to a healthy corporate culture. In June, allegations of harassment against hedge fund manager Crispin Odey led to a Harvey Weinstein moment for the industry. His partners ousted the founder and majority owner. The "Financial Times" found 13 women who accused him of sexual harassment. The public outrage led service providers like Morgan Stanley and customers like Schroders to pull the ripcord. Such a high-profile case had never occurred before.

“We have taken a lead among regulators in taking a clear stance that non-financial misconduct, such as sexual harassment, is misconduct for regulatory purposes," said Nikhil Rathi, CEO of the FCA. "We are strengthening our expectations of how the firms we regulate consider such misconduct when deciding whether someone is fit to work in the industry." The proposals presented now stem from a discussion paper released in the summer of 2021. Decisions on what should actually be implemented are expected in the coming year.

Among the proposals is that companies should develop a strategy for diversity and inclusion, outlining how they intend to achieve their diversity goals. Demographic information must be collected, reported, and disclosed. According to a survey by the regulators, companies have not been collecting much data so far. Information about neurological diversity or the socio-economic background of the workforce is rarely gathered. Additionally, companies should set goals for addressing the underrepresentation of certain groups. According to the PRA's consultation paper, 57% of surveyed companies have incorporated diversity and inclusion into management objectives, with over a third considering it in variable compensation.

"Diversity and inclusion play an important role in guarding against groupthink within companies," said Sam Woods, CEO of the PRA. "Companies that welcome and encourage a wide range of perspectives will manage their risks better." This aligns with the regulatory goals. Moreover, companies are thus able to tap into a broader pool of emerging talents.

“When I began my career in asset management as a trainee more than three decades ago, I was completely unaware of the industry’s reputation as a haven for white middle-class men,” said industry veteran Helena Morrissey, who chairs the Diversity Project. Fortunately, the situation has improved, but women are still vastly underrepresented. She has initiated an industry-wide program aimed at placing more women in portfolio manager positions.

Sometimes, however, there are simply no women or minority candidates available for a job. According to the Future Skills Report 2023 by the Financial Services Skills Commission, the top five skills most in demand in the finance industry are technology-related. These include competencies like software development and cybersecurity. In the industry, the proportion of tech jobs in the total workforce is twice as high as in the overall economy. However, the percentage of women in tech jobs in European companies is only 22%. Ethnic minorities make up 25% of tech workers. The recruitment firm Green Park advises companies to consider neurodiverse candidates more seriously. Autistic individuals may be more productive than their colleagues in the right environment.