By: Financial Reporting Council
October 24, 2019
The Financial Reporting Council (FRC) has today launched a substantial and ambitious revision to the UK Stewardship Code. The new Code substantially raises expectations for how money is invested on behalf of UK savers and pensioners. In particular, the new Code establishes a clear benchmark for stewardship as the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society.
The new Code is a vital part of the comprehensive revision of the UK’s world leading corporate governance framework that began with the introduction of the new UK Corporate Governance Code in January 2019.
The new Code focuses on protecting the interests of UK savers and pensioners by ensuring that their money is managed responsibly with a new emphasis on creating long-term value and on considering beneficiary and client needs. It directly addresses the issues raised by Sir John Kingman’s independent review of the FRC in respect of the previous Code.