General
Board diversity: PRA letter
The Prudential Regulation Authority (PRA) has written to chairs of regulated firms aiming to
reinforce the importance it places on diversity for improving
decision-making and providing effective challenge. It also reminds
firms of the requirement to comply with PRA rules in this area and
refers to:
- PRA supervisory statement SS5/16 on
corporate governance; and
- the European Banking Authority's
(EBA's) February 2020 report on diversity practices.
The PRA advises chairs to satisfy themselves that their firm is
meeting its requirements and to take remedial action where they are
not. In doing so, chairs (and where appropriate, chairs of the
nomination committee) should consider the extent to which the
diversity policy is embedded in recruitment and succession planning
for the board, to support constructive debate and challenge on the
range of issues facing the firm. Chairs should expect to discuss
this with their
