On 20 April 2022, the Financial Conduct Authority (“FCA”) published its final statement regarding diversity and inclusion on company boards and executive management with a view to increasing the disclosure of diversity and inclusion on listed company boards and executive committees, with benefits to corporate governance and management decision making (“PS22/3”). PS22/3 sets out the final proposals as previously set out in the Consultation Paper 21/24 ‘diversity and inclusion on company boards and executive committees’ (CP21/24) published in July 2021 to improve transparency on the diversity of listed company boards and executive management teams. To support the FCA’s focus on implementing diversity and inclusion, they have introduced new Listing Rules (the “Listing Rules”), previously consulted on in the consultation paper. The final proposals are the same as those set out in the consultation paper, with some changes to how data is collected and reported…

next steps

In-scope companies are required to make these disclosures in their annual reports for financial years starting on or after 1 April 2022, meaning that the new disclosures will start to appear in annual financial reports published from quarter two onwards.

For more information, and any guidance or advice on the new measures Cleveland & Co External in-house counsel™, your specialist outsourced legal team, are here to help.

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