Direction of Travel: Diversity & Inclusion in Financial Services


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The D&I aspect of these plans has now been dropped, but firms will still find this page useful in relation to the UK Government’s forthcoming D&I legislative agenda which will affect all employers. The regulators have long made clear that they view D&I as a fundamental aspect of good culture. The FCA and the PRA published separate but closely aligned Consultation Papers on 25 September 2023 , which also included significant new proposals to bring non-financial misconduct (NFM) within the FS regulatory regime. The Consultation Papers closed on 18 December 2023. Regulatory policy proposals for FS firms on both D&I and NFM were planned to follow. In 2024 it was announced that the NFM proposals would be prioritised, with the D&I proposals coming later. However, on 12 March 2025, it was confirmed that the D&I proposals would not be taken forward. There were several reasons for this, outlined below, but letters from both the FCA and the PRA published on 11 March 2025 show that they do not consider D&I in financial services any less important than they did when the Consultation Papers were published. Indeed, the PRA stated, “We continue to think that an appropriate focus on diversity and inclusion in the culture of the firms we regulate can deliver improved internal governance, decision-making and risk management, and that this can support both safety and soundness – through reduced risk of group-think – and the competitiveness of UK financial services over the medium- to long-term”. Both the FCA and PRA also affirmed their support for voluntary D&I initiatives. The decision to drop their regulatory D&I proposals was in light of a broad range of feedback received and in particular potential extra regulatory burden at a time when the Government has a number of D&I legislative measures planned that will affect all employers. These include the Employment Rights Bill (with gender equality measures such as action plans on gender pay gaps and supporting employees through menopause; enhancements to the duty to prevent sexual harassment; and new obligations regarding third party harassment) and a forthcoming Equality (Race and Disability) Bill (with ethnicity and disability pay gap reporting). As FS firms will be equally affected by these, the resources on this page will continue to be useful to them in implementing the Government’s legislative D&I plans, in particular around diversity data collection. Separately, NFM remains firmly on the agenda, with next steps to be set out by mid-2025, and firms should be preparing for what lies ahead. We have a series on the related NFM proposals here: Tackling Non- Financial Misconduct in Financial Services \| Eversheds Sutherland Each instalment in our D&I series below looks at different aspects of embedding D&I in the workforce, the issues to consider, and best practice to help FS firms review their strategies. Some of these will be relevant in the light of the Government’s planned legislation, and some will continue to assist where firms wish to continue, or perhaps review, their own voluntary initiatives. We hope you find the series helpful. Don’t forget to refer to our Tackling Non- Financial Misconduct in Financial Services \| Eversheds Sutherland page covering the latest developments in relation to NFM for FS firms FS regulators drop D&I plans entirely, and announce an update on non-financial misconduct In an update published on 12 March 2025, the FCA and PRA jointly stated they will not be taking forward the D&I proposals in the 2023 Consultation paper in light of the broad range of feedback, expected legislative developments and to avoid additional burdens on firms. At the same time, the FCA announced that it is continuing to prioritise its work on non-financial misconduct, but is taking further time to get its approach right and will set out next steps by the end of June 2025. In our LinkedIn post, Sophie White and Claire Carroll share their thoughts on how this affects FS employers. “Culture is Contagious” – next steps for non-financial misconduct and D&I Our industry specialists comment on a speech given by Emily Shepperd, FCA Chief Operating Officer, on 3 February 2024, where she discussed the importance of culture, psychological safety, and gave the latest update on FS regulators’ plans both for non-financial misconduct, and diversity and inclusion. UK Financial Services: Implications of FCA non-financial misconduct survey findings Following our high level LinkedIn flash update above on the FCA’s findings in its culture and non-financial misconduct (NFM) survey, our latest instalment in this topic series takes a much deeper look analysing the survey findings, their potential implications (including in light of the closely-linked new employer duty to prevent sexual harassment, and the recently published Employment Rights Bill) and actions firms may want to consider. The FCA is asking firms to benchmark and peer review the survey findings against their own performance and to consider their approach to NFM in detail. This article will be especially relevant as financial services firms anticipate the FCA’s long-awaited Policy Statement on NFM due by the end of this year. FCA publishes findings of non-financial misconduct survey The FCA has now published findings from its survey on incidents of non-financial misconduct, along with how it expects all regulated firms to respond. This flash update considers the high level findings, what firms should do now, along with the new duty (already in force) on all employers to prevent sexual harassment, and proposed related changes in the new Employment Rights Bill. Update on Diversity & Inclusion Consultation Paper proposals The Financial Conduct Authority has indicated it is prioritising non-financial misconduct guidance over the data collection and diversity proposals from its Consultation Paper (the latter will not be taken forward at this stage). This change aligns with the Treasury Committee's recommendations and reflects complexities around the diversity proposals. In the latest instalment of our Diversity and Inclusion in Financial Services series, we consider: what is the reason for this apparent change of focus? does this mean the FCA is dropping the data collection and D&I proposals altogether? what could firms expect in the light of the FCA’s comments? Creating your Diversity & Inclusion (D&I) Strategy In the next instalment of our topic series, we consider the proposed requirement for “large firms” (251+ employees under the FCA and PRA definitions), and CRR and Solvency II firms of any size, to establish, implement and maintain an effective D&I “Strategy” (policy). "Sexism in the City” Inquiry - report and recommendations We take look at the key recommendations arising from the “Sexism in the City” Inquiry report, focusing on barriers for women in UK Financial Services and was published on International Women’s Day 2024. UK Financial Services – FCA surveys wholesale insurers and intermediaries on non-financial misconduct In this article we take a look in more detail at the FCA's recent survey on non-financial misconduct to wholesale financial services firms, how they should respond, and how the survey may impact firms' general approach to non-financial misconduct. Non-Financial misconduct – an update In this instalment, we take a look at the FCA’s plans to gather data on non-financial misconduct and the role of regulatory references in tackling NFM. Diversity and Inclusion in Financial Services (UK): what to do now In our social media carousel, Sophie White, Paul Fontes and Ruth Christy look at some of the high level considerations firms can be thinking about now, having digested the FCA’s and PRA’s Consultation Papers. Our short carousel post highlights areas where firms can reflect and plan ahead. Diversity and Inclusion in Financial Services (UK): what's next for firms? Watch our webinar recording as we discuss the Financial Conduct Authority’s and Prudential Regulation Authority’s recent Consultation Papers on D&I in financial services. Now that firms have had a chance to digest the headline proposals, our speakers will discuss in more detail: Which size and types of firms will be subject to which proposals in the Consultation Papers What steps firms should be taking now to build trust with staff and encourage them to share their diversity data How to build and review D&I strategy, taking into account the regulators’ specific requirements Collecting the prescribed Culture and Inclusion feedback and what you should do now to prepare Potential pitfalls in setting D&I targets and reporting data The proposed rules on non-financial misconduct and how they will impact all firms New proposals on Diversity and Inclusion (D&I) in UK financial services Key new proposals on D&I and new draft rules on non-financial misconduct have finally been published by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), after a wait of more than two years since the joint regulators’ Discussion Paper on this topic. Our article looks at the main proposals which cover collecting, reporting and publishing D&I data, strategies and targets annually (depending on size and type of firm) and non-financial misconduct. Discussing the FCA & PRA’s diversity consultation paper Following the release of the FCA & PRA’s joint diversity consultation paper last month, firms will want to know what’s on the road ahead. As large firms will have to report diversity data, but the regulators are not proposing to force staff to disclose it, Esyllt Martin, Senior Associate in our Employment team, suggests that collecting and collating data through good engagement and clear communication about data use with employees will be vital. New published proposals: what do firms need to know? The FCA and PRA last month published Consultation Papers on improving Diversity and Inclusion in Financial Services. These consultations come off the back of a groundswell of announcements around this area from regulators across sectors, and a growing concern of how to deal with non-financial misconduct in the financial services industry. But what do Financial Service firms need to know? How do you achieve good staff Diversity and Inclusion (D&I) data collection to support your D&I strategy? “Data is king” in many industries – and it is clear from the FCA’s findings in December 2022 on how a sample of firms were embedding D&I strategy that good data collection is the key starting point in being able to design and drive firms’ D&I strategies, which not many firms had achieved in a cohesive way to date. In this short video, we outline key factors employers can focus on to build up trust and engagement with staff, which is vital for encouraging staff to offer up what is often very personal and sensitive information. Only when firms overcome the challenges involved in collecting good quality and quantity of D&I data can they truly start to analyse where they may be falling short and how D&I can be improved. An accessible voiceover and captions edit is available for this video. If you wish to view this version, please follow this link here. Socio-economic background: the new key concern for UK financial services? In the fifth instalment, we look at the growing importance of socio-economic background as a diversity category for the financial services sector. In this article, Sophie White, John Morgan and James England consider how firms can collect meaningful data on socio-economic background from their staff with a view to increasing socio-economic diversity. Last year, a Socio-Economic Diversity Taskforce report showed the stark realities of differences in progression and pay in the sector. The regulators’ Discussion Paper in July 2021 heavily hinted that socio-economic status would be a diversity category encompassed in their proposals. Firms which do not collect such data or take meaningful (and lawful) action to improve socio-economic diversity at all levels need to be prepared to start doing so. Collecting workforce diversity data in financial services – what are the legal factors? In the fourth instalment of our series on Diversity & Inclusion (D&I) in Financial Services, Sophie White and Gayle McFarlane have produced an interactive hub looking at the categories that could be included in the collection of diversity data as suggested by the regulators’ D&I Discussion Paper from July 2021. Our interactive hub identifies whether each category is a protected characteristic under the Equality Act 2010 and whether it constitutes “special category data” under data protection legislation (and if so, what lawful conditions for processing such special category data may apply). Employers need first to identify a general lawful basis for processing for the collection of all categories of diversity data, assuming that this information is linked to an individual. In addition, a “condition for processing” is also required for special category data. See further below for important information about what this involves. Click on the diversity category for further information on protected characteristic and special category data considerations. Where it is special category data, a further click on each condition gives a brief explanation. Please ensure you also take into account the further information below. In order to collect high quality diversity information, it’s important to obtain the buy in from staff, which involves building trust, explaining why the information is important, what it will be used for, what it will not be used for as well as how it will be protected (e.g. who will have access, how it will be anonymised or “pseudonymised”). In layman’s terms, this might be considered to be, or be referred to as consent. However, the lawful basis of consent is notoriously difficult to justify in the context of the employment relationship. It is therefore important to first consider whether there is another lawful basis for the processing that you intend to carry out. For collecting diversity data for the purposes of equal opportunities monitoring, the general lawful processing ground is usually likely to be that it is necessary for the purposes of legitimate interests pursued by the employer or third party, although employees can object under this ground and the employer must carry out a balancing test, considering whether the rights of the employee should override the legitimate interest. There are different conditions for the processing special category data, and the hub indicates what specific condition may be considered for each category of diversity data, and a further click will give you more information about that condition. Employers should carry out a Data Protection Impact Assessment before collecting special category data under the UK GDPR, to identify and assess any risks to individuals and put in place measures to mitigate against those risks, as well as complying with the other data protection principles, including data minimisation and integrity and confidentiality. A tailored privacy notice may also be required. Do not hesitate to get in touch for further information. For further information on collecting diversity data globally please see our navigating the global challenges of diversity data article. Employers may also be interested in Diversidata®, our new international diversity data solution. Insight into the diversity characteristics of a workforce can transform a diversity and inclusion strategy, but employers must manage various complex laws and compliance requirements, together with different cultural approaches to diversity, when it comes to the collection of the data. Our Diversidata tool allows users to select up to 16 types of diversity data across up to 27 jurisdictions to receive tailored advice on what is possible. See our web page for further details or to request a free demonstration. Why is D&I a regulatory issue? In the second instalment in our new series on Diversity and Inclusion (D&I) in Financial Services, we look at why this is a regulatory issue. Our launch video explained that the UK financial services regulators intend to publish their consultation paper on improving D&I in the sector soon. In this short post we highlight how the regulators very much see driving D&I as a crucial part of future FS regulation. What is the difference between positive action and positive discrimination? In the third instalment of our series on Diversity & Inclusion (D&I) in Financial Services, Hannah Mahon and James England from our Employment law team present a podcast on the fine distinction between lawful “positive action” and unlawful “positive discrimination” under the Equality Act 2010. If D&I is to be a priority in Financial Services, why is lawful positive action not more widely used, as recommended by the CIPD in 2022? Hannah and James set out the legal differences between the two concepts, the reasons why organisations are wary of using positive action, and some practical pointers to help employers consider how they can use positive action in a way that not only pursues their D&I goals but protects them from claims of unlawful positive discrimination. With the Government’s recent publication of Guidance on positive action in the workplace, and the Consultation Paper on D&I awaited from the Financial Services regulators, this podcast is a timely reminder of the issues involved and what employers need to know to further their D&I objectives. We were delighted to launch the series early in 2023 with this introductory video, in which Sophie White, Claire Carroll and Simon Collins revisited the key points of the D&I Discussion Paper from July 2021, and considered what to look out for when the Consultation Papers were published. You can also find links to previous relevant briefings on this issue below: Diversity and inclusion in financial services: the regulators outline their plans - Eversheds Sutherland (eversheds-sutherland.com) (July 2021) Understanding approaches to diversity and inclusion in UK financial - Eversheds Sutherland (eversheds-sutherland.com) (December 2022) The materials on the Eversheds Sutherland website are for general information purposes only and do not constitute legal advice. While reasonable care is taken to ensure accuracy, the materials may not reflect the most current legal developments. Eversheds Sutherland disclaims liability for actions taken based on the materials. Always consult a qualified lawyer for specific legal matters. To view the full disclaimer, see our Terms and Conditions or Disclaimer section in the footer. 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Welcome to our ‘Direction of travel: Diversity & Inclusion in Financial Services’ series, focussed on the UK Financial Services regulators’ (FCA, PRA and Bank of England) plans to make Diversity & Inclusion (D&I) part of the regulatory regime for financial services firms. The D&I aspect of these plans has now been dropped, but firms will still find this page useful in relation to the UK Government’s forthcoming D&I legislative agenda which will affect all employers.

The regulators have long made clear that they view D&I as a fundamental aspect of good culture. The FCA and the PRA published separate but closely aligned Consultation Papers on 25 September 2023 , which also included significant new proposals to bring non-financial misconduct (NFM) within the FS regulatory regime. The Consultation Papers closed on 18 December 2023. Regulatory policy proposals for FS firms on both D&I and NFM were planned to follow. In 2024 it was announced that the NFM proposals would be prioritised, with the D&I proposals coming later.

However, on 12 March 2025, it was confirmed that the D&I proposals would not be taken forward. There were several reasons for this, outlined below, but letters from both the FCA and the PRA published on 11 March 2025 show that they do not consider D&I in financial services any less important than they did when the Consultation Papers were published. Indeed, the PRA stated, “We continue to think that an appropriate focus on diversity and inclusion in the culture of the firms we regulate can deliver improved internal governance, decision-making and risk management, and that this can support both safety and soundness – through reduced risk of group-think – and the competitiveness of UK financial services over the medium- to long-term”. Both the FCA and PRA also affirmed their support for voluntary D&I initiatives.

The decision to drop their regulatory D&I proposals was in light of a broad range of feedback received and in particular potential extra regulatory burden at a time when the Government has a number of D&I legislative measures planned that will affect all employers. These include the Employment Rights Bill (with gender equality measures such as action plans on gender pay gaps and supporting employees through menopause; enhancements to the duty to prevent sexual harassment; and new obligations regarding third party harassment) and a forthcoming Equality (Race and Disability) Bill (with ethnicity and disability pay gap reporting). As FS firms will be equally affected by these, the resources on this page will continue to be useful to them in implementing the Government’s legislative D&I plans, in particular around diversity data collection.

Separately, NFM remains firmly on the agenda, with next steps to be set out by mid-2025, and firms should be preparing for what lies ahead. We have a series on the related NFM proposals here: Tackling Non- Financial Misconduct in Financial Services | Eversheds Sutherland

Each instalment in our D&I series below looks at different aspects of embedding D&I in the workforce, the issues to consider, and best practice to help FS firms review their strategies. Some of these will be relevant in the light of the Government’s planned legislation, and some will continue to assist where firms wish to continue, or perhaps review, their own voluntary initiatives.

We hope you find the series helpful. Don’t forget to refer to our Tackling Non- Financial Misconduct in Financial Services | Eversheds Sutherland page covering the latest developments in relation to NFM for FS firms

FS regulators drop D&I plans entirely, and announce an update on non-financial misconduct

In an update published on 12 March 2025, the FCA and PRA jointly stated they will not be taking forward the D&I proposals in the 2023 Consultation paper in light of the broad range of feedback, expected legislative developments and to avoid additional burdens on firms. At the same time, the FCA announced that it is continuing to prioritise its work on non-financial misconduct, but is taking further time to get its approach right and will set out next steps by the end of June 2025. In our LinkedIn post, Sophie White and Claire Carroll share their thoughts on how this affects FS employers.

“Culture is Contagious” – next steps for non-financial misconduct and D&I

Our industry specialists comment on a speech given by Emily Shepperd, FCA Chief Operating Officer, on 3 February 2024, where she discussed the importance of culture, psychological safety, and gave the latest update on FS regulators’ plans both for non-financial misconduct, and diversity and inclusion.

UK Financial Services: Implications of FCA non-financial misconduct survey findings

Following our high level LinkedIn flash update above on the FCA’s findings in its culture and non-financial misconduct (NFM) survey, our latest instalment in this topic series takes a much deeper look analysing the survey findings, their potential implications (including in light of the closely-linked new employer duty to prevent sexual harassment, and the recently published Employment Rights Bill) and actions firms may want to consider.

The FCA is asking firms to benchmark and peer review the survey findings against their own performance and to consider their approach to NFM in detail. This article will be especially relevant as financial services firms anticipate the FCA’s long-awaited Policy Statement on NFM due by the end of this year.

FCA publishes findings of non-financial misconduct survey

The FCA has now published findings from its survey on incidents of non-financial misconduct, along with how it expects all regulated firms to respond. This flash update considers the high level findings, what firms should do now, along with the new duty (already in force) on all employers to prevent sexual harassment, and proposed related changes in the new Employment Rights Bill.

Update on Diversity & Inclusion Consultation Paper proposals

The Financial Conduct Authority has indicated it is prioritising non-financial misconduct guidance over the data collection and diversity proposals from its Consultation Paper (the latter will not be taken forward at this stage). This change aligns with the Treasury Committee's recommendations and reflects complexities around the diversity proposals.

In the latest instalment of our Diversity and Inclusion in Financial Services series, we consider:

what is the reason for this apparent change of focus?
does this mean the FCA is dropping the data collection and D&I proposals altogether?
what could firms expect in the light of the FCA’s comments?

Creating your Diversity & Inclusion (D&I) Strategy

In the next instalment of our topic series, we consider the proposed requirement for “large firms” (251+ employees under the FCA and PRA definitions), and CRR and Solvency II firms of any size, to establish, implement and maintain an effective D&I “Strategy” (policy).

"Sexism in the City” Inquiry - report and recommendations

We take look at the key recommendations arising from the “Sexism in the City” Inquiry report, focusing on barriers for women in UK Financial Services and was published on International Women’s Day 2024.

UK Financial Services – FCA surveys wholesale insurers and intermediaries on non-financial misconduct

In this article we take a look in more detail at the FCA's recent survey on non-financial misconduct to wholesale financial services firms, how they should respond, and how the survey may impact firms' general approach to non-financial misconduct.

Non-Financial misconduct – an update

In this instalment, we take a look at the FCA’s plans to gather data on non-financial misconduct and the role of regulatory references in tackling NFM.

Diversity and Inclusion in Financial Services (UK): what to do now

In our social media carousel, Sophie White, Paul Fontes and Ruth Christy look at some of the high level considerations firms can be thinking about now, having digested the FCA’s and PRA’s Consultation Papers. Our short carousel post highlights areas where firms can reflect and plan ahead.

Diversity and Inclusion in Financial Services (UK): what's next for firms?

Watch our webinar recording as we discuss the Financial Conduct Authority’s and Prudential Regulation Authority’s recent Consultation Papers on D&I in financial services. Now that firms have had a chance to digest the headline proposals, our speakers will discuss in more detail:

Which size and types of firms will be subject to which proposals in the Consultation Papers
What steps firms should be taking now to build trust with staff and encourage them to share their diversity data
How to build and review D&I strategy, taking into account the regulators’ specific requirements
Collecting the prescribed Culture and Inclusion feedback and what you should do now to prepare
Potential pitfalls in setting D&I targets and reporting data
The proposed rules on non-financial misconduct and how they will impact all firms

New proposals on Diversity and Inclusion (D&I) in UK financial services

Key new proposals on D&I and new draft rules on non-financial misconduct have finally been published by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), after a wait of more than two years since the joint regulators’ Discussion Paper on this topic.

Our article looks at the main proposals which cover collecting, reporting and publishing D&I data, strategies and targets annually (depending on size and type of firm) and non-financial misconduct.

Discussing the FCA & PRA’s diversity consultation paper

Following the release of the FCA & PRA’s joint diversity consultation paper last month, firms will want to know what’s on the road ahead.

As large firms will have to report diversity data, but the regulators are not proposing to force staff to disclose it, Esyllt Martin, Senior Associate in our Employment team, suggests that collecting and collating data through good engagement and clear communication about data use with employees will be vital.

New published proposals: what do firms need to know?

The FCA and PRA last month published Consultation Papers on improving Diversity and Inclusion in Financial Services. These consultations come off the back of a groundswell of announcements around this area from regulators across sectors, and a growing concern of how to deal with non-financial misconduct in the financial services industry. But what do Financial Service firms need to know?

How do you achieve good staff Diversity and Inclusion (D&I) data collection to support your D&I strategy?

“Data is king” in many industries – and it is clear from the FCA’s findings in December 2022 on how a sample of firms were embedding D&I strategy that good data collection is the key starting point in being able to design and drive firms’ D&I strategies, which not many firms had achieved in a cohesive way to date.

In this short video, we outline key factors employers can focus on to build up trust and engagement with staff, which is vital for encouraging staff to offer up what is often very personal and sensitive information. Only when firms overcome the challenges involved in collecting good quality and quantity of D&I data can they truly start to analyse where they may be falling short and how D&I can be improved.

An accessible voiceover and captions edit is available for this video. If you wish to view this version, please follow this link here.

Socio-economic background: the new key concern for UK financial services?

In the fifth instalment, we look at the growing importance of socio-economic background as a diversity category for the financial services sector. In this article, Sophie White, John Morgan and James England consider how firms can collect meaningful data on socio-economic background from their staff with a view to increasing socio-economic diversity. Last year, a Socio-Economic Diversity Taskforce report showed the stark realities of differences in progression and pay in the sector. The regulators’ Discussion Paper in July 2021 heavily hinted that socio-economic status would be a diversity category encompassed in their proposals. Firms which do not collect such data or take meaningful (and lawful) action to improve socio-economic diversity at all levels need to be prepared to start doing so.

Collecting workforce diversity data in financial services – what are the legal factors?

In the fourth instalment of our series on Diversity & Inclusion (D&I) in Financial Services, Sophie White and Gayle McFarlane have produced an interactive hub looking at the categories that could be included in the collection of diversity data as suggested by the regulators’ D&I Discussion Paper from July 2021. Our interactive hub identifies whether each category is a protected characteristic under the Equality Act 2010 and whether it constitutes “special category data” under data protection legislation (and if so, what lawful conditions for processing such special category data may apply).

Employers need first to identify a general lawful basis for processing for the collection of all categories of diversity data, assuming that this information is linked to an individual. In addition, a “condition for processing” is also required for special category data. See further below for important information about what this involves.

Click on the diversity category for further information on protected characteristic and special category data considerations. Where it is special category data, a further click on each condition gives a brief explanation. Please ensure you also take into account the further information below.

In order to collect high quality diversity information, it’s important to obtain the buy in from staff, which involves building trust, explaining why the information is important, what it will be used for, what it will not be used for as well as how it will be protected (e.g. who will have access, how it will be anonymised or “pseudonymised”).

In layman’s terms, this might be considered to be, or be referred to as consent. However, the lawful basis of consent is notoriously difficult to justify in the context of the employment relationship. It is therefore important to first consider whether there is another lawful basis for the processing that you intend to carry out.

For collecting diversity data for the purposes of equal opportunities monitoring, the general lawful processing ground is usually likely to be that it is necessary for the purposes of legitimate interests pursued by the employer or third party, although employees can object under this ground and the employer must carry out a balancing test, considering whether the rights of the employee should override the legitimate interest. There are different conditions for the processing special category data, and the hub indicates what specific condition may be considered for each category of diversity data, and a further click will give you more information about that condition.

Employers should carry out a Data Protection Impact Assessment before collecting special category data under the UK GDPR, to identify and assess any risks to individuals and put in place measures to mitigate against those risks, as well as complying with the other data protection principles, including data minimisation and integrity and confidentiality. A tailored privacy notice may also be required.

Do not hesitate to get in touch for further information. For further information on collecting diversity data globally please see our navigating the global challenges of diversity data article.

Employers may also be interested in Diversidata®, our new international diversity data solution. Insight into the diversity characteristics of a workforce can transform a diversity and inclusion strategy, but employers must manage various complex laws and compliance requirements, together with different cultural approaches to diversity, when it comes to the collection of the data. Our Diversidata tool allows users to select up to 16 types of diversity data across up to 27 jurisdictions to receive tailored advice on what is possible. See our web page for further details or to request a free demonstration.

Why is D&I a regulatory issue?

In the second instalment in our new series on Diversity and Inclusion (D&I) in Financial Services, we look at why this is a regulatory issue. Our launch video explained that the UK financial services regulators intend to publish their consultation paper on improving D&I in the sector soon. In this short post we highlight how the regulators very much see driving D&I as a crucial part of future FS regulation.

What is the difference between positive action and positive discrimination?

In the third instalment of our series on Diversity & Inclusion (D&I) in Financial Services, Hannah Mahon and James England from our Employment law team present a podcast on the fine distinction between lawful “positive action” and unlawful “positive discrimination” under the Equality Act 2010. If D&I is to be a priority in Financial Services, why is lawful positive action not more widely used, as recommended by the CIPD in 2022? Hannah and James set out the legal differences between the two concepts, the reasons why organisations are wary of using positive action, and some practical pointers to help employers consider how they can use positive action in a way that not only pursues their D&I goals but protects them from claims of unlawful positive discrimination. With the Government’s recent publication of Guidance on positive action in the workplace, and the Consultation Paper on D&I awaited from the Financial Services regulators, this podcast is a timely reminder of the issues involved and what employers need to know to further their D&I objectives.

We were delighted to launch the series early in 2023 with this introductory video, in which Sophie White, Claire Carroll and Simon Collins revisited the key points of the D&I Discussion Paper from July 2021, and considered what to look out for when the Consultation Papers were published.

You can also find links to previous relevant briefings on this issue below:

Diversity and inclusion in financial services: the regulators outline their plans - Eversheds Sutherland (eversheds-sutherland.com) (July 2021)

Understanding approaches to diversity and inclusion in UK financial - Eversheds Sutherland (eversheds-sutherland.com) (December 2022)

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