The Financial Conduct Authority has targeted having nearly half of its senior leadership team identify as female by 2020.
The FCA has set a 45% target for four years’ time and a 50% target by 2025.
The regulator also wants 8% and 13% of its leaders to be ethnic minorities by 2020 and 2025 respectively.
Andrew Bailey, chief executive of the FCA, said: “Every day we make judgements and decisions that impact almost everyone in the UK so it’s vital that our people reflect the society that we serve.
“I am proud of the FCA’s work to date on diversity. Setting targets for the FCA senior leadership team to be representative of the female and BAME (Black, Asian, Minority Ethnic) UK populations is a logical next step.
“I believe that we are nothing without our people, and a workplace which combines talented people and diverse backgrounds is the best sort.
“Encouraging diverse attitudes and opinions in our daily work makes us a stronger and more effective regulator.”