<div id="readability-page-1"><div><div><div><div><p>Diversity targets imposed on City boardrooms would be axed under a new policy unveiled by the Conservatives to slash red tape.</p><p>Sir Mel Stride, the shadow chancellor, announced proposals on Thursday to ban Britain’s main financial watchdogs from introducing new rules on diversity and repeal existing regulations imposed on major high street banks and insurers.</p><p>Under the Tory plans, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) would be forced to focus strictly on financial issues when making new rules by requiring the regulators to obtain ministerial approval for any “non-financial” rules.</p><p>Sir Mel said the party would also sweep away any rules for banks and insurers which do not relate to financial stability, competition, consumer protection or growth, it it wins power at the next election.</p><p>The move is designed to free City firms from having to comply with diversity and inclusion rules, which have increased compliance costs for businesses.</p><p>These include FCA diversity targets for banks and investment managers to have 40pc of board seats assigned to women and at least one seat occupied by a person from an ethnic minority background.</p><p>“If we want to compete in the world, British business must be freed from unnecessary costs and red tape,” Sir Mel said. “For too long, governments have imposed burdens on firms around issues such as climate change and diversity, while encouraging the independent regulators to do the same.”</p><p>The proposals come amid a wider shake-up at the regulators following pressure from Rachel Reeves to cut red tape.</p><p>Earlier this year, the Chancellor urged Nikhil Rathi, the FCA chief, and Sam Woods, the PRA boss, to come up with ideas to boost UK growth after claiming City regulations were acting like a “boot on the neck” of business.</p><p>The move prompted a major rethink from regulators, with Mr Rathi pledging to roll back some of the more onerous rules. However, he has warned that greater risk-taking will lead to a greater chance of consumer harm in future.</p><p>It came after the FCA and the PRA scrapped plans to introduce new diversity and inclusion reporting rules for City firms over concerns about imposing extra costs on banks.</p><p>The watchdogs had faced a backlash over the plans from City executives, before abandoning the proposals in March following Donald Trump’s crackdown on diversity, equity and inclusion (DEI) initiatives in the US.</p><p>The Tory proposals are part of a blitz by the party on business regulations, which included an announcement last week to scrap mandatory reporting of sustainability and climate change issues.</p><p>Sir Mel added: “I want the UK to have the most dynamic financial services industry in the world. That means companies should be allowed to focus on delivering value for customers and shareholders, not on targets, quotas and reporting requirements dictated by government.”</p><p>The FCA and PRA were contacted for comment.</p></div></div></div></div></div>

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<p>The Conservative Party has proposed to eliminate diversity targets for City firms, aiming to reduce regulatory burdens. Shadow Chancellor Sir Mel Stride announced that the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) would need ministerial approval for any non-financial rules. This move is intended to lower compliance costs associated with diversity regulations, which require significant representation of women and ethnic minorities on boards. The proposals are part of a broader effort to streamline regulations and enhance the competitiveness of British businesses.</p>

Tories pledge to ban diversity targets for City firms