Industry to be held more accountable under new Stewardship Code 25 October 2019

Industry to be held more accountable under new Stewardship Code

FRC has published revised code

 

The Financial Reporting Council (FRC) has overhauled its Stewardship Code setting what it calls a “world-leading benchmark” as it demands greater accountability of the UK financial sector.

Starting with redefining "stewardship", which the FRC now states is: "the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries, which leads to sustainable benefits for the economy, the environment and society", the new code will hold signatories more accountable, calling on them to report annually on activity and associated outcomes.  

The reports will have to show the previous year's activity, the outcome - including engagement with their invested assets, voting records and how their actions have protected and grown their investments' value.