The UK Stewardship Code aims to enhance the quality of engagement between asset managers and companies to help improve long-term risk-adjusted returns to shareholders. Published in 2010, the Code was revised in 2012. Signatories were encouraged to update their policy statements after the revised Code took effect. The Code sets out a number of areas of good practice to which the UK Financial Reporting Council (FRC) believes institutional investors should aspire. It also describes steps asset owners can take to protect and enhance the value that accrues to the ultimate beneficiary. The FRC sees the UK Stewardship Code as complementary to the UK Corporate Governance Code for listed companies and, like that Code, it should be applied on a ‘comply or explain’ basis. Since 2010 all UK-authorised Asset Managers are required under the FCA’s Conduct of Business Rules to produce a statement of commitment to the Stewardship Code or explain why it is not appropriate to their business model.
Industry sectors covered by the instrument
Organizations covered by the instrument
Institutional investors with voting rights in publically listed UK companies
Type of instrument
Code of conduct or guideline
Mandatory or voluntary
The geographical scope