CFPB Proposes New Diversity Standards

The CFPB and five other regulatory agencies have proposed new joint standards for assessing the diversity policies and practices of the entities they regulate. Dodd-Frank directed the CFPB, Securities and Exchange Commission, National Credit Union Administration, Office of the Comptroller of the Currency, Federal Reserve and Federal Deposit Insurance Corporation to establish Offices of Minority and Women Inclusion (OMWI).

The OMWI in each agency is responsible for all matters relating to diversity in management, employment and business activities. Dodd-Frank also directed each OMWI to develop standards for assessing the diversity policies and practices of entities regulated by that agency. The proposal targets several standards, including: (1) organizational commitment to diversity and inclusion; (2) workforce profile and employment practices; (3) procurement and business practices; and (4) practices to promote transparency of organizational diversity and inclusion.

The proposal states that the assessment envisioned by this plan will not include traditional examination or other supervision processes. The model assessment, the proposal spells out, includes self-assessment—using both quantitative and qualitative evaluation of diversity and inclusion policies and practices, voluntary disclosure to relevant agencies and informing the public through use of tools such as a public website and annual reports.

The agencies request comment on this proposal, which can be found here. Comments must be received on or before December 24, 2013.