Sexism in the city inquiry could bring about tighter equality regulations

The committee, which itself includes only one woman, is calling for evidence around pay, flexible working, sexual harassment of women in financial services - especially in senior roles.

This comes as part of the Government's attempts to redress the balance of equality in the city as a means of avoiding another financial crisis.

Sarah Turner, partner and head of employment at law firm Turner Parkinson, said: "The Select Committee inquiry is likely to bring about tighter regulations and draw attention to existing equality laws that a number of city firms have neglected in recent years. The ‘boys club' label, commonly associated with large financial firms, will now be carefully scrutinised.

"It is essential that large financial firms, as with all businesses, review their equality policies, and how these are monitored and enforced, on a regular basis. Non-discriminatory criteria in areas such as promotions and flexible working will ensure that all staff are treated equally, and can help avoid sex discrimination claims.

"Companies should also remember that during the recession, disgruntled employees are more likely to allege discrimination in order to win a large payout. Businesses need to be extra vigilant and have water-tight equality policies to avoid significant costly damages awards against them."