SEC invites regulated entities to provide diversity self-assessments

On Wednesday, the Securities and Exchange Commission commenced its biennial collection of Diversity Self-Assessment Submission from Regulated Entities.

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The effort provides entities with the opportunity to engage in a self-assessment of their diversity and inclusion policies and practices, and gives entities insight into any strengths, opportunities, risks and vulnerabilities surrounding the policies, officials said.

The SEC will later use the data from the submissions to assess and report on any progress and trends in regulated entity diversity-related activities.

“The participation of regulated entities in submitting diversity self-assessments is critical for a more comprehensive understanding of the diversity practices and policies that are being implemented as well as to share information on practices and identify opportunities,” Nathaniel H. Benjamin, director of the Office of Minority and Women Inclusion (OMWI), said.

Both conducting and submitting the diversity self-assessments is voluntary, officials said, and is not part of the commission’s examination process. The SEC noted in letters to the regulated entities that they may use the Diversity Self-Assessment Tool (DSAT) on the SEC’s web site to conduct the self-assessment, or may submit diversity self-assessments in their own format. The SEC has also provided a set of Frequently Asked Questions on the OMWI’s site to help regulated entities with their voluntary self-assessments and the DSAT.