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The U.S. Securities and Exchange Commission (SEC) is mulling proposed rule changes requiring mutual funds disclose information on the gender and racial diversity of their directors, according to Reuters News reports.

The suggestion from an SEC advisory subcommittee goes further than earlier recommendations and comes amid a rise in discussion about the financial industry’s lack of diversity.

At present, there is “virtually no representation of women and minorities” on the boards that set policies across the $29.3 trillion U.S. mutual fund industry Gilbert Garcia, chair of the subcommittee and managing partner of a Houston investment firm, said in an interview with Reuters.

Garcia said the subcommittee does not have a specific set of disclosures in mind, but said in general more data should lead to more diversity, according to the report. “The theory is that by shining transparency on this, market forces will change the makeup” of boards, he said.

In a Wednesday committee hearing, the U.S. regulator’s diversity and inclusion subcommittee approved several recommendations for addressing diversity, equity, and inclusion concerns in the asset management industry.

SEC chair Gary Gensler confirmed that the U.S. regulator is considering ways to increase diversity in the asset management industry, including requiring disclosure of aggregated demographic information about an adviser’s employees and owners, or an adviser’s diversity and inclusion practices as it selects other advisers.

The panel recommended three major steps to address imbalances, the first being calling for enhanced disclosure in SEC filings by registered investment advisors on the racial diversity of their workforce, officers, and owners.

Another proposed step would involve similar requirements for fund boards and consultants who recommend investment advisors and funds.

The panel also recommended the SEC sets up a formal process for managing complaints of discriminatory practices in the asset management industry, including independent contracting and employment.

A final recommendation calls on the SEC staff to study pay-to-play practices and political lobbying, after research raised questions as to whether the “limitations of pay-to-play rules leave scope for contributions to be made by market participants who have extensive lobbying budgets, which are funded by, and typically used to procure influence for, disproportionately large, non-diverse, firms.”

“Of the $70 trillion in global financial assets under management across the investment universe, less than 1% are managed by minority-owned or women-owned firms,” the SEC subcommittee said in a statement. “Considering the critical role of asset allocators in setting priorities on how capital is distributed, the implications of these stark gender and racial disparities are concerning and adverse to the interests of the public markets at large.”