The UK Financial Reporting Council (FRC) published a consultation to propose significant updates to its UK Stewardship Code.
The consultation reflects on four years of analysis of reporting against the 2020 code, a news release said. The proposed updates are intended to deliver increased transparency to investors, savers, and pensioners in the UK.
For the first time, there are separate, dedicated principles for different service providers, including proxy advisers and investment consultants, to help promote insightful reporting on how they support stewardship activity through the entire investment chain, the release said.
In another first and following stakeholder feedback prior to the consultation’s launch, the Stewardship Code will be “supported by targeted guidance to help indicate the range of information that signatories might wish to include in their reporting”, the release said.
According to the release, other key proposals include:
- A revised and enhanced definition of stewardship that emphasises the need to create long-term sustainable value for clients and beneficiaries as a key outcome of good stewardship; and
- A streamlined reporting process separating policy and activity disclosures to reduce reporting burdens.
The consultation will run until 19 February. Responses should be sent by email to stewardshipcode@frc.org.uk.
Following stakeholder feedback, the FRC expects to publish an updated Stewardship Code later in 2025 for implementation in the first reporting cycle of 2026.
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