The UK’s two main financial watchdogs have ditched plans to impose diversity, equity and inclusion (DEI) targets on City institutions amid a government push to put Britain’s regulators on a growth footing.

Britain's top financial regulators have scrapped proposed new rules to boost diversity and inclusion in the industry, and mothballed a fresh crackdown on non-financial misconduct, citing fears of imposing unnecessary regulatory burdens on firms.

The U.K.'s financial watchdog has dropped plans to name and shame firms it is investigating at an early stage amid a “lack of consensus” for its proposal.

Top UK regulators abandoned proposals to boost diversity across financial firms as they lean into the Labour government’s attempts to stoke economic growth by cutting red tape.