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The UK parliamentary watchdog responsible for overseeing top financial institutions has initiated an investigation into sexism in the City of London. This comes five years after they acknowledged multiple challenges impeding gender diversity in senior positions.
The House of Commons Treasury select committee, representing all major political parties, announced on Friday that their inquiry will focus on the obstacles faced by women working in the financial services industry, with the goal of assessing progress in closing the gender pay gap and combatting sexual harassment and misogyny.
Harriett Baldwin, the Conservative chair of the committee, stated that they will be investigating whether enough effort has been made to cultivate supportive workplace cultures, how to address and prevent harassment and misogyny, and the role that the government and regulators should play in demonstrating appropriate behavior.
In their 2018 report, the committee identified various barriers to women’s advancement in financial services. They highlighted the existence of unconscious bias within companies, the negative impact of bonus structures on the advancement of women, and called for the implementation of more objective performance assessment criteria.
The committee also asserted that it is unnecessary for certain roles in the financial services sector to require long working hours based in the office.
Since 2017, large employers in the UK have been legally required to disclose their gender pay gap, which is the difference in average earnings between men and women.
The working patterns within the financial services sector have undergone significant changes in recent years due to the shift towards remote work prompted by the pandemic. While hybrid working arrangements have introduced more flexibility for some employees, there are concerns about the risk of burnout.
This inquiry follows the departure of City financier Crispin Odey from his own hedge fund after multiple women accused him of assault or harassment, as reported by the Financial Times.
The Financial Conduct Authority (FCA), the principal regulatory body in the sector, is conducting investigations into both Odey and Odey Asset Management. FCA boss Nikhil Rathi is expected to face further scrutiny when he appears before the Treasury select committee next week.
Amanda Blanc, CEO of Aviva, one of the top companies on the FTSE 100 index, revealed last year that she experienced escalating sexism as she progressed to more senior positions within the industry.
Blanc’s comments came after Aviva shareholders made derogatory remarks at the company’s annual meeting, suggesting that she was unfit for the role and should conform to outdated stereotypes.
The Treasury select committee has issued a call for written evidence, which will remain open until September 1. They particularly encourage contributions from women who have worked in financial services.
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