Sixty second summary
UK Stewardship Code and the LGPS
01 Nov 2019
- The FRC has published the updated UK Stewardship Code which takes effect from 1 January 2020. The Code represents a new best practice standard for both asset owners and asset managers alike.
- Funds who want to remain or become signatories must publish a Stewardship Report, demonstrating compliance with the 12 principles of the Code by 31 March 2021.
- LGPS Funds should use the Code in conjunction with forthcoming SAB guidance as a basis for reviewing and strengthening their approach to responsible investment activity.
The FRC last week launched its updated UK Stewardship Code. The Code aims to improve stewardship practices, setting a substantially higher standard which reflects the changing expectations of investors since the Code’s last revision in 2012. The requirements of the revised Code for asset owners and managers extend to establishing clear stewardship objectives, integrating stewardship in investment strategies, and adhering to clearer and more elaborate reporting requirements.
The Code comprises a set of 12 ‘apply and explain’ Principles for asset managers and asset owners, and six Principles for service providers, including investment consultants.
Read our full summary to find out more about the key changes to the code and what the next steps are for signatories.