The Regulator has published guidance documents
for bodies which hold the power to appoint trustees on how to
improve equality, diversity and inclusion (EDI). There is separate
guidance for scheme governing bodies and for employers.
The guidance states that EDI supports robust discussion and effective decision-making and is an important consideration for schemes, including their sub-committees.
It also suggests putting an EDI policy in place to assist
decision-makers. This should include an agreed definition of EDI,
the EDI aims of the governing body and an EDI training plan. The
chair of the trustees should use the policy to guide decisions and
record EDI actions (or explanations when no action is taken). The
application of the policy should be considered annually and
reviewed as needed.
The guidance sets out recommendations for EDI best practice, including on trustee selection, the role of the chair and the promotion of an "inclusive governing body culture". Case studies are also included.
The guidance for employers makes similar points to the trustee
guidance, but includes employer-specific points, such as
encouraging compliance with Equality Act 2010 obligations as part
of good EDI practice. The guidance suggests that if the employer
finds it challenging to address diversity gaps through
member-nominated and employer trustee appointments, independent or
professional pension trustee positions could improve diversity on
the governing body. The guidance also includes suggestions for
running an appropriate tender process.
For more information on EDI, please see our April 2023 briefing.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.