Regulators proposed joint standards on Wednesday for assessing the diversity practices and policies of regulated entities as part of an effort to promote transparency and awareness.
The standards, which were proposed by the CFPB, FDIC, Federal Reserve, National Credit Union Administration, OCC and SEC, are tailored to account for a number of variables.
Four key areas are covered, including commitment to diversity and inclusion; practices to promote transparency of organizational diversity and inclusion; procurement and business practices and supplier diversity; and workforce profile and employment practices.
Dodd-Frank mandates that each Office of Minority and Women Inclusion under each federal regulatory agency must develop standards for assessing diversity and inclusion within the companies they regulate.
OMWI directors have held several roundtable discussions, with participation from credit unions, holding companies, depository institutions and industry trade groups. The agencies’ OMWIs have also held roundtable discussions with financial professionals, consumer advocates and community representatives.
After the proposed standards are published in the Federal Register, the policy statement will become available for public comment within 60 days.
Regulated entities with 100 or more employees or those that are federal contractors with 50 or more employees and are prime contractors or first-tier subcontractors, with contracts of over $50,000, are required to submit an Employer Information Report—or EEO-1 Report—to the Equal Employment Opportunity Commission.
The report contains data on employment diversity and will assist regulators in assessing the companies’ policies and practices.