Let’s get engaged: Stewardship in the UK – FRC and FCA consult on revisions to the Stewardship Code and on the regulatory framework for effective stewardship

Let’s get engaged! On 30 January 2019, the FRC issued proposals to revise the UK Stewardship Code to set “substantially higher expectations for investor stewardship policy and practice”. Sir John Kingman has criticised the existing Stewardship Code as a major and well-intentioned intervention, but not effective in practice. At the same time, the FRC and the FCA jointly published a discussion paper to “advance the discussion about what effective stewardship should look like, expectations for financial services firms, and how this can be best supported by the UK’s regulatory framework”.  All this needs to be seen in the context of SRD II, increased non-financial reporting and the focus on long-term, sustainable success. For further details, click here.