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Enterprise

Listed firms told to appoint more women to their boards or explain why not

The rules are set to come into force this time next year

At least 40% of a company's directors should be women and a woman should hold at least one of the senior board positions

New rules are to come into force next year requiring businesses who want to float on the º£½ÇÊÓÆµ stock markets have four in 10 of its board members be women, or explain why not.

The Financial Conduct Authority has said companies will need to account for diversity in their top teams and will report against targets the watchdog sets a year from now.

The FCA added that some firms will not be able to meet the targets but should be able to explain why.

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At least 40% of a company's directors should be women and a woman should hold at least one of the senior board positions - either chair, chief executive, finance boss or senior independent director, the PA news agency said.

At least one member of the board should be from an ethnic minority background.

"As investors pay increasing attention to diversity at the top of the companies they invest in, enhancing transparency at board and executive management level will help hold companies to account and drive further progress," said Sarah Pritchard, executive director of markets at the FCA.

The first reports will come in a year. The rules apply to the accounting periods from the beginning of this month.