The Securities and Exchange Commission once again got a low response rate when it asked regulated entities such as money managers, investment advisers and broker-dealers to participate in a voluntary diversity self-assessment.
From the 1,327 regulated entities the SEC’s Office of Minority and Women Inclusion, or OMWI, identified to participate in the 2022 Diversity Assessment Report, the agency received a total of 58 responses, which cover more than 90 regulated entities, or 6.8% of those invited, according to a summary published March 21.
That’s down from the 9% response rate the OMWI received for the 2020 report. It has conducted the survey every two years since 2018; the 2018 survey garnered a 5% response rate.
"The lack of information on diversity policies and practices for these entities creates a substantial knowledge gap," the SEC wrote in its summary. "For a more comprehensive understanding of practices and policies for workforce and supplier diversity in the financial securities industry, greater participation in the Diversity Assessment Report process is needed."
Among the firms that responded in 2022, most of which were from firms that are divisions or subsidiaries of larger financial institutions, 100% said they include diversity and inclusion considerations as part of strategic plans for recruiting, hiring, retaining and promoting employees, the report found.
Moreover, 88% said they had a written diversity and inclusion policy that is approved and supported by the chief executive officer or other senior-level official, and 67% said they include diversity and inclusion considerations as part of their strategic plan for contracting with vendors and suppliers.
Other results: 45% of firms said they have a business diversity policy that is aimed at providing business opportunities to diverse suppliers, including minority-owned and women-owned businesses; 86% said they monitor and evaluate performance under their diversity policies and practices on an ongoing basis; and 36% said they publish information pertaining to their assessment of their diversity policies and practices.
Separately on March 21, the OWMI unveiled its annual report to Congress that outlined the SEC’s diversity efforts over the last fiscal year.
Of the SEC’s 162 senior officers, 75 were women and 50 were minority in fiscal year 2023, reflecting a 13.6% relative increase in women and a 31.6% relative increase in minorities from the year prior, according to the report.
Overall, 36% of the SEC’s workforce identify as minorities and 44% of the money paid to the pool of socioeconomically identifiable vendors was paid to minority- and women-owned businesses, the report noted.
SEC Chair Gary Gensler said in the report that the agency’s most important asset is its staff.
“In recent years, we have made important gains to help ensure that the agency is a place where everyone on the staff can bring their whole selves to work, make their mark in public service, and rise in the profession, including into senior leadership,” he added.
