Financial Regulators Propose Joint Standards for Assessing Diversity Policies and Practices of Regulated Entities
The SEC, Board of Governors of the Federal Reserve System ("FRB"), Consumer Financial Protection Bureau ("CFPB"), FDIC, National Credit Union Administration ("NCUA") and Office of the Comptroller of the Currency ("OCC") proposed joint standards for assessing the diversity policies and practices of the institutions that they regulate. These standards are required by Section 342 of Dodd-Frank (Office of Minority and Women Inclusion). The proposed standards are intended to promote the transparency and awareness of diversity policies and practices within the institutions. The assessment standards cover four key areas:
- organizational commitment to diversity and inclusion;
- workforce profile and employment practices;
- procurement and business practices, and supplier diversity; and
- practices to promote transparency of organizational diversity and inclusion.
Here are some of the more specific requirements for achieving compliance with the recommended diversity program:
(1) recruiting at historically black colleges and universities, Hispanic-serving institutions, women's colleges, and colleges that typically serve majority-minority populations;
(2) sponsoring and recruiting at job fairs in urban communities;
(3) placing employment advertisements in newspapers and magazines oriented toward minorities and women;
(4) partnering with organizations that are focused on developing opportunities for women and members of minorities to place talented young women and members of minorities in industry internships, summer employment, and full-time positions;
(5) where feasible, partnering with inner-city high schools, girls' high schools, and high schools with majority-minority populations to establish or enhance financial literacy programs and provide mentoring; and
(6) any other mass-media communications that the Office of Minority and Women Inclusion determines necessary.