IAA Voices Strong Support for Legislation to Collect Data on Diversity, Equity and Inclusion
April 19, 2021
Recognizing that the investment adviser profession “has a long way to go in matters of diversity, equity, and inclusion,” the IAA has voiced its strong support for the Diversity and Inclusion Data Accountability and Transparency Act, which was favorably reported out of the. House Financial Services Committee on April 20.
The bill would amend Sec. 342 of the Dodd-Frank Act, which established an Office of Minority and Women Inclusion (OMWI) at the SEC, Treasury, Federal Reserve, OCC and NCUA. This provision has been interpreted as prohibiting these agencies from requiring regulated entities to respond to their surveys on diversity. The bill would add a single sentence to Sec. 342 allowing these agencies to require that regulated entities with more than 100 employees provide diversity information to OMWI.
IAA President & CEO
In a letter to Committee Chair Maxine Waters (D-Calif) and Ranking Member Patrick McHenry (R-NC), IAA President and CEO Karen Barr said the investment adviser community “must address the issues that have resulted in lack of diversity and must make meaningful progress towards change. To that end, the IAA is committed to working collectively with its members and with policymakers to seek to promote diversity, equity, and inclusion as a value for our industry and to providing education, information, and resources to help foster significant progress.
“The ability to measure progress is critically important,” Barr said in her letter. “For this reason, enactment of the Diversity and Inclusion Data Accountability and Transparency Act would constitute a significant foundational step in addressing diversity in the asset management industry. The IAA urges you and Committee members to support enactment of the Act.”
The IAA, in partnership with the research firm Cerulli Associates, has conducted a survey to document progress toward and attitudes about diversity, equity, and inclusion at advisory firms. The final report, which will be released in coming days, will include action items that firms and their personnel can take to accelerate diversity in the industry.
Our Diversity, Equity, and Inclusion Working Group is producing a comprehensive guide for advisory firms to use to establish successful DE&I programs, part of a larger collection of online resources that will launch soon on the IAA website.
The IAA has also originated or participated in a number of presentations on promoting DE&I in the industry. Recordings of those presentations are available online.
