UK Stewardship Code
Published: 30 September 2023
3 minute read
Stewardship Code Consultation
The FRC committed to review the Code once the 2020 Code had been in operation for a few years. We have now launched a public consultation on our proposed revisions to the Code, which will run from 11 November 2024 to 19 February 2025.
The UK Stewardship Code 2020
The UK Stewardship Code 2020 sets high stewardship standards for those investing money on behalf of UK savers and pensioners, and those that support them. Stewardship is 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 Code applies to:
- Asset owners such as pension schemes, insurers, foundations, endowments, local government pension pools and sovereign wealth funds.
- Asset managers who manage assets on behalf of UK clients or invest in UK assets.
- Service providers such as investment consultants, proxy advisors, data and research providers that support asset owners and asset managers to exercise their stewardship responsibilities.
| Name | The UK Stewardship Code 2020 |
|---|---|
| Publication date | 23 October 2019 |
| Type | Code |
| Format | PDF, 235.2 KB |
UK Stewardship Code 2020 Signatories
The FRC has released the UK Stewardship Code 2020 signatory list. The signatory list was updated on 22 July 2024.
The next deadline to apply to become a signatory is 30 April 2025 for Asset Managers and Service Providers and 31 May 2025 for Asset Owners.
UK Stewardship Code 2020 Review
In the next stage of the review, the FRC is focusing on the purpose, principles, process and positioning of the Code. We are also carefully considering how the Service Providers Code might support greater transparency of the activities of Proxy Advisors.
| Name | Key Themes for the UK Stewardship Code 2020 Review |
|---|---|
| Publication date | 22 July 2024 |
| Format | PDF, 397.4 KB |
Interim Changes to Reporting for Stewardship Code Signatories
Following extensive engagement with stakeholders, and in response to their feedback, the FRC is taking steps to reduce the reporting burden on signatories to the Stewardship Code 2020. These changes are effective from the application deadline of 31 October 2024.
Review of Reporting
The Review of Stewardship Reporting 2022 gives an overview of reporting from 2022.
This Review provides guidance on our expectations of reporting on two areas, adding to those we have covered in previous publications. The areas covered are:
- Engagement and exercising rights and responsibilities
- Setting expectations, monitoring and holding to account third-party managers
Effective Stewardship Reporting: Examples from 2021 and expectations for 2022 analyses reports from the first applications to the revised Code. The report focuses on four areas:
- Market wide, systemic risk and well functioning markets
- Non-listed equity
- Outcomes
- Engagement reporting
The Principles
The Code comprises a set of 12 ‘apply and explain’ Principles for asset managers and asset owners, and a separate set of six Principles for service providers.
Become a signatory
To become a signatory to the Code, organisations must submit to the FRC a Stewardship Report demonstrating how they have applied the Code’s Principles in the previous 12 months. The report may cover any 12-month period beginning after 1 January 2020. The FRC will assess the report and if it meets our reporting expectations, the organisation will be listed as a signatory to the Code. Once listed, organisations must annually report to remain signatories.
The next deadline to apply to become a signatory is 30 April 2025 for Asset Managers and Service Providers and 31 May 2025 for Asset Owners.
Research
We have published research which explores the early impact of the revised Stewardship Code on the practice and reporting of asset managers and asset owners. The FRC commissioned this independent research in March 2021, carried out by a team of researchers from Minerva Analytics, the Durham University Business School and the Dickson Poon School of Law, King’s College London to better understand the current stewardship practices of asset managers and asset owners and to assess the impact of the revised 2020 Code.
- The Influence of the UK Stewardship Code 2020 on practice and reporting (PDF)
- Annex 1: Methodology, survey and interview questions from the Influence of the Stewardship Code research (PDF)
| Name | The Influence of the UK Stewardship Code 2020 on practice and reporting |
|---|---|
| Publication date | 5 July 2022 |
| Type | Report |
| Format | PDF, 3.0 MB |
| Name | Annex 1: Methodology, survey and interview questions from the Influence of the Stewardship Code research |
| Publication date | 5 July 2022 |
| Format | PDF, 1005.8 KB |