D&I as a non-financial risk: considerations for control functions

Both regulators recently consulted on proposals to improve D&I at regulated firms and is clear from these consultations that the FCA and PRA expect firms to be treating a lack of D&I as a non-financial risk.  This means that the second and third lines of defence at firms need to be monitoring progress towards better D&I and ensuring risks associated with poor D&I are effectively managed.  Our latest post in this series, considering the regulators’ proposals, hones in on firms’ control functions and the adaptations that may be required to meet future UK regulatory expectations.