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FRC calls for ‘more diversity’ in accountancy sector

The Financial Reporting Council has called for an “increase” in BAME members and other minorities to fill senior management roles in the accountancy sector. 

According to a study published by the FRC, BAME individuals only make up 6.7% of partner roles at the largest firms and no firms with under 200 employees reported that they had BAME managers.  It also revealed that three out of the 20 audit firms questioned did not have a diversity policy in place.

As such, the FRC said “there is no valid reason for this” and that “urgent action” is needed to amend this issue. 

A diversity/equal opportunity policy is not a legal requirement for UK employers to obtain, further studies by the council show that at the largest firms only 20% of partner positions are held by women, however females now make up 56% of manager roles at smaller firms.

Sir Jon Thompson, FRC CEO, said: “Firms have a responsibility to ensure they are leading by example on diversity and inclusion and that they have appropriate policies in place to address any shortcomings. 

“While this year’s findings reveal that some progress has been made, firms without meaningful policies in place are dropping the ball. It is clear progress needs to be fast-tracked so that the senior management of firms more closely reflects the wider workforce it represents.”

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