The UK Financial Reporting Council (FRC) on Tuesday published The UK Stewardship Code 2026, an updated set of principles that offers a framework for reporting that aims to support long-term sustainable value creation while significantly reducing the reporting burden for signatories.
The new code, set to take effect 1 January 2026, defines stewardship as “the responsible allocation, management, and oversight of capital to create long-term sustainable value for clients and beneficiaries”.
The publication follows a formal consultation that involved over 1,500 stakeholders and incorporates insights from four years of reporting under the previous 2020 code. The new code is intended to deliver increased transparency to investors, savers, and pensioners in the UK.
“Extensive consultation confirmed strong investor backing for the code’s importance and has directly informed the changes we have made to ensure it remains fit for the future,” FRC CEO Richard Moriarty said in a news release. “The code is not prescriptive and does not direct how any signatory should choose to invest. It takes a principles-based approach which is focused on delivering a clear outcome of value creation for clients and beneficiaries.”
The code operates as part of a comprehensive regulatory framework alongside the UK Financial Conduct Authority’s (FCA’s) oversight of financial markets, the Pensions Regulator’s protection of member interests, and the UK Department for Work and Pensions’ pension scheme regulations. According to the news release, it currently has nearly 300 signatories that represent around £50 trillion in assets under management.
“The FRC’s new Stewardship Code represents a strong, industry-wide commitment to improving transparency in stewardship practices. It enables owners to access high-quality information about how their assets are being managed,” Sacha Sadan, the FCA’s director of sustainable finance, said in the news release. “The new code sets out clear expectations for effective stewardship, helping firms act with clarity.”
According to the news release, 2026 will serve as a transition year to support signatories in adapting to the new code.
The FRC, which also provided a snapshot view of the code, will host a webinar about the code on 18 June.
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