The nation's regulated asset management firms would be required to disclose their track record of allocating capital to Black and other minority investment managers, under new legislation proposed in Congress.
- The bill comes as advocates for racial equity and inclusion in the capital markets are increasingly calling on large firms, pensions and other asset owners to address the lack of diversity in the market.
- The proposal by Reps. Maxine Waters (D-Calif.) and Joyce Beatty (D-Ohio) would require firms to give regulators details on their own internal diversity and inclusion practices, including data on the racial makeup of their boards, partners and suppliers.
- In a letter, Waters and Beatty requested such details from more than 30 of the largest US firms, including BlackRock, Vanguard and State Street.
- Reacting to the news, Robert Raben, an advocate for diversity in asset management, said in a statement, "Data enables us to have a clear picture of what's happening now, and what needs to be done going forward."