Sexism in the City

Treasury Committee Closed Inquiry
Opened: 12 Jul 2023 Closed: 28 May 2024 Parliament page
The Treasury Committee is examining the barriers faced by women in financial services and the progress made in removing gender pay gaps. The MPs will explore what role firms, the Government and regulators should play in combatting sexual harassment and misogyny. The Committee will evaluate the progress on implementing the … Read more
17 Recommendations
19 Conclusions
1 Report
6 Letters
4 Events
Activity timeline 12 events
23 May
2024
Correspondence
14 May
2024
Report published
8 Mar
2024
Report published
27 Feb
2024
Correspondence
27 Feb
2024
Correspondence
27 Feb
2024
Correspondence
27 Feb
2024
Correspondence
27 Feb
2024
Correspondence
17 Jan
2024
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
13 Dec
2023
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
15 Nov
2023
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
17 Oct
2023
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Title HC No. Published Items Response
Sixth Report - Sexism in the City HC 240 8 Mar 2024 36 Responded
Recommendations & Conclusions
8 results
Clear
5 Conclusion Accepted
Sixth Report - Sexism in the City
Make linking executive pay to diversity a firmer 'comply or explain' commitment under the Charter.
We heard that linking senior executive pay and bonuses to performance on diversity and inclusion can be an effective way to incentivise change, though this practice is not currently widespread. One of the Women in Finance Charter principles is for … Read more
Government Response
The government agrees that linking executive pay to diversity performance is effective and states that a 'comply or explain' mechanism for this is already central to the Women in Finance Charter, with 84% of signatories currently having such a link and ongoing monitoring.
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11 Recommendation Accepted
Sixth Report - Sexism in the City
Risk of losing hybrid working benefits for women with caring responsibilities.
Hybrid working spread accidentally and unplanned as a result of the Covid pandemic and the full benefits and costs of new hybrid and remote working arrangements continue to be identified. Those arrangements have, however, provided substantial Sexism in the City … Read more
Government Response
The government agrees that flexible working can improve diversity, noting the recently enacted Flexible Working Act 2023 and Carers’ Leave Act 2023 already assist with flexible working and caring responsibilities. It states its approach is to focus on outcomes for firms rather than specifying interventions, but will provide support where a regulatory view is needed.
HM Treasury
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12 Conclusion Accepted
Sixth Report - Sexism in the City
Hybrid working risks women's career progression without cultural change and equal treatment.
There are also risks that women lose out on promotion or pay progression possibilities if the change in practice towards hybrid and remote working is not accompanied with a change in the culture of firms and the mindset of managers … Read more
Government Response
The government agreed with the risks identified and highlighted the Flexible Working Act 2023 and Carers’ Leave Act 2023 as already addressing related issues. It also noted its consultation proposals encourage firms to identify and address barriers, potentially including flexible working initiatives.
HM Treasury
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15 Recommendation Accepted
Sixth Report - Sexism in the City
Progress in supporting employees affected by menopause requires further action.
Welcome progress has been made in recognising the effect of the menopause and in identifying ways of assisting those affected to overcome the challenges it presents without having to leave their jobs. That progress, as in other areas of this … Read more
Government Response
The government described ongoing actions to support women affected by menopause, including the appointment of a Menopause Employment Champion and her Four Point Plan, new DWP guidance, and identifying menopause as a priority in the Women's Health Strategy.
HM Treasury
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16 Recommendation Accepted
Sixth Report - Sexism in the City
Encourage firms to establish menopause policies and support to retain talent.
We recommend that Government continue to encourage firms to recognise the impact of menopause and to establish policies and support for those who are affected to ensure that their experience and talents are not prematurely lost from the industry. (Paragraph … Read more
Government Response
The government has accepted this recommendation, highlighting actions such as appointing a Menopause Employment Champion, promoting her Four Point Plan, launching new guidance on the Help to Grow portal, and prioritizing menopause in the Women’s Health Strategy to encourage employer support.
HM Treasury
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18 Recommendation Accepted
Sixth Report - Sexism in the City
Require PRA and FCA to review bonus cap removal impact on gender pay inequality.
Given that gender bonus gaps are typically even larger than gender pay gaps, we are concerned that the removal of the bankers’ bonus cap could increase the difference between the overall take-home pay of men and women in financial services, … Read more
Government Response
The PRA has committed to monitoring the effects of the bonus cap removal on remuneration structures, and the FCA will work with the PRA to review its impact on gender pay and inequality at the earliest opportunity once sufficient evidence is available.
HM Treasury
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34 Conclusion Accepted
Sixth Report - Sexism in the City
Widespread misuse of non-disclosure agreements silences harassment victims and protects perpetrators.
The widespread misuse of non-disclosure agreements (NDAs) in sexual harassment cases is shocking. NDAs have the effect of silencing the victim of harassment when they are forced out of an organisation, while protecting the perpetrator and leaving them free to … Read more
Government Response
The government shares concerns about NDA misuse and is taking action, including the Higher Education (Freedom of Speech) Act 2023 which prevents NDAs in certain misconduct cases, and has committed to legislation clarifying NDAs cannot prevent reporting a crime.
HM Treasury
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36 Recommendation Accepted
Sixth Report - Sexism in the City
Collect data on non-disclosure agreement use by regulated firms in misconduct cases.
In the meantime, we recommend that the FCA collect data on the use of NDAs by regulated firms in cases of non-financial misconduct. This will provide a more detailed, quantitative picture of the extent of their use in financial services … Read more
Government Response
The government states that the FCA recently issued a non-financial misconduct survey to wholesale firms to collect data on the use of confidentiality agreements in relation to various misconduct types, and they are currently assessing the responses.
HM Treasury
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Government Response AI assessment · 36 of 17 classified
Accepted 8
Accepted in Part 2
Acknowledged 6
Deferred 8
Rejected 12
Total 17 recs + 19 conclusions
Correspondence 6 letters
23 May 2024 To committee Letter from the Minister for Women - Dame Harriett Baldwin MP
Parliament page
27 Feb 2024 To committee Letter from the Financial Conduct Authority, relating to non-financial misconduct, dated 6 February 2024
Parliament page
27 Feb 2024 To committee Letter from Baroness Vere to the Chair, relating to the 'Sexism in the City' inquiry, dated 7 February 2024
Parliament page
27 Feb 2024 To committee Letter from the Chair to Baroness Vere, relating to the 'Sexism in the City' inquiry, dated 30 January 2024
Parliament page
27 Feb 2024 To committee Letter from Maria Caulfield MP to the Chair, relating to the 'Sexism in the City' inquiry, dated 12 February 2024
Parliament page
27 Feb 2024 To committee Letter from the Chair to Maria Caulfield MP, relating to the 'Sexism in the City' inquiry, dated 30 January 2024
Parliament page