As the financial industry grapples with concerns about diversity and inclusion, the U.S. Financial Industry Regulatory Authority Inc. (FINRA) is looking for ways that regulation could create barriers.
In a notice to the industry, FINRA is seeking feedback on the ways that its rules, operations or processes may “create unintended barriers to greater diversity and inclusion in the broker-dealer industry;” or that have “unintended disparate impacts” on people in the industry.
The self-regulatory organization (SRO) said it supports the industry’s efforts to address diversity, and that it has undertaken a number of its own initiatives, but that conversations with some in the industry have suggested that aspects of its rules and processes could impede diversity and inclusion.
In addition to seeking feedback on its rules generally, the SRO specifically asked whether its current approach to collecting and publishing background data on reps, including information on their education, employment status, tenure and complaints, creates an unintended barrier to industry diversity.
The deadline for input is June 28.