SEC Push for Investment Firm Diversity Info Gets Few Takers

An SEC campaign to better understand the diversity, equity and inclusion policies and practices of about 1,300 investment advisers, brokers and other firms through voluntary self-assessments garnered only 58 responses last year, according to an agency report released Tuesday.

That reply rate translates to about 4.5%, though it may be higher if a firm responded on behalf of other firms it controls. The Securities and Exchange Commission’s Office of Minority and Women Inclusion didn’t identify any of the firms or indicate if they were responding for others in the report, which gave an overview of the unit’s work last year. The agency said that it will work to identify barriers to participation in the diversity assessment program, as it seeks to boost its response rate.

“The biggest challenge the SEC continues to face relating to assessing the diversity policies and practices of its regulated entities remains getting the regulated entities to share information about their self-assessments,” the report said.

• The SEC still is analyzing the responses it received recently and will publish its findings in the coming months, according to the report.
• The SEC last reported how firms handle DEI in 2022, saying a call to 1,263 firms for voluntary self-assessments yielded 59 responses that covered 118 entities.
• Of those firms, 98% said they included DEI considerations as part of their plans to recruit, hire, retain and promote workers.