Regulating diversity and non-financial misconduct - jurisdictional perspectives

Regulators have heightened their focus on how strategies against discrimination and personal forms of misconduct within financial institutions can contribute to better culture, governance, decision-making and risk management. Yet firms with cross-border operations should be aware of diverging approaches across the UK, EU and US, write Elisabeth Øverland, Holly Insley and colleagues.

Holly Insley (holly.insley@freshfields.com) is a partner and Elisabeth Øverland (elisabeth.overland@freshfields.com) counsel in Freshfield's London office. Falko Glasow (falko.glasow@freshfields.com) is counsel in Frankfurt, Jennifer Loeb (jennifer.loeb@freshfields.com) serves as counsel in Washington DC, while Christopher Bernard (chris.bernard@freshfields.com) is a London-based senior knowledge lawyer.

Around the world, regulators have become increasingly concerned about culture in financial services firms, as part of a wider focus on environmental, social and governance(ESG) issues. However, there are significant differences in the approach taken by different jurisdictions with regard to issues such as diversity and inclusion (D&I) in financial services, as well as non-financial misconduct, which can present challenges for firms with a global footprint.