The Securities and Exchange Commission is pressing forward with its commitment to diversity, equity, inclusion, and accessibility, the Wall Street watchdog's own watchdogs say. In a dual effort to showcase its progress and hold regulated entities accountable, the SEC's Office of Minority and Women Inclusion (OMWI) released two key reports this week with findings that stir the pot on Wall Street's diversity practices.
The 2022 Diversity Assessment Report, delves into voluntary self-assessments provided by companies regulated by the SEC, where a scant 58 submissions were received, covering just under 7 percent of all regulated entities. The firms that did respond seemed to wear their dedication to inclusive employment on their sleeves, with most indicating an organizational stride toward enhancing diversity within their workforce. However, when it came to policies regarding business and supplier diversity, the number of firms stepping up to the plate dropped considerably, according to SEC.
Meanwhile, the OMWI's FY 2023 Annual Report to Congress laid bare the SEC's internal strides toward creating a workforce reflective of the United States' rich tapestry. The report declared that of over 13,500 applicants for mission-critical roles, where the demographic info was provided, 56.6% were minorities, and 39.2% were women, as reported by the SEC. This move tops the charts with a bump in both women and minorities in senior officer positions compared to the previous fiscal year. The agency accurately identifies 36% of its workforce as minorities, while women-owned and minority-owned businesses were the recipients of 44% of the agency's socially identifiable vendor spend.
But the self-patting on the back by the SEC shouldn't eclipse the broader picture — the paltry number of submissions to their diversity self-assessments puts into question just how committed the industry as a whole is to these values. While the internal statistics of the SEC paint an improving picture of diversity within its ranks, the challenge remains in the court of the wider financial sector, to not only draft diversity policies but also walk the walk by publicizing their efforts and results — a shortfall the OMWI has been tasked with addressing.
