UK authorities respond to Treasury Committee questions about Sexism in the City inquiry recommendations

The House of Commons Treasury Committee has published letters from HM Treasury, the Prudential Regulation Authority and the Financial Conduct Authority setting out progress made to date in relation to the Committee's "Sexism in the City" inquiry. The FCA letter (dated November 29, 2024) explains that the FCA has prioritized work on non-financial misconduct and the FCA rules, and plans to publish a policy statement in early 2025. The FCA is currently working through feedback received on its wider proposals relating to data collection and target-setting, and intends to set out next steps jointly with the PRA in Q2 2025. In 2025, the FCA plans to strengthen its messaging to whistleblowers, including providing clearer guidance for whistleblowers who are impacted by a non-disclosure agreement but wish to report to the FCA.

The PRA letter (dated December 2, 2024) reiterates the PRA's support for work being done in this area and acknowledges that developments in government policy on diversity and inclusion may impact its proposals for moving forward. The PRA letter also notes that following the removal of the bonus cap, both the PRA and the FCA expect firms to take care to avoid adverse impacts on pay gaps, and it plans to review the effect on pay gaps when sufficient evidence is available.

HM Treasury's letter (dated December 9, 2024) focuses on: (i) the HM Treasury Women in Finance Charter; (ii) gender pay gap and sexual harassment in the workplace; and (iii) the Plan to Make Work Pay – the government initiative on labour market reform.

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