Stewardship Code Consultation
Published: 11 November 2024
Response deadline: 19 February 2025
| Title | Stewardship Code Consultation (2024) |
|---|---|
| Format | pdf, 462.2 KB |
Overview
The UK Stewardship Code promotes improved transparency, disclosure and accountability in the stewardship eco-system. The Code allows investor reporting to be assessed by the FRC as an independent and impartial body to maintain standards. It has a strong reputation both domestically and internationally for supporting high-quality stewardship.
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 proposals in this consultation stem from engagement with more than 1500 stakeholders during 2024 and are underpinned by four years of analysing and reviewing reporting against the 2020 Code.
We believe that the draft revised Code will continue to drive effective stewardship by supporting high quality disclosures and appropriately reflects developing stewardship practice, and maintains its global standing. The proposed changes do not place onerous reporting burdens on signatories. They include:
- Amending the definition of stewardship to support more transparent conversations between actors in the investment chain about their investment beliefs and objectives, while being sufficiently broad to be applicable to signatories across the investment chain and different asset classes.
- Streamlining the Principles with more concise reporting prompts to help concentrate reporting on the most insightful areas of reporting, while reducing the volume.
- Tailoring the Service Provider Principles to include some that are dedicated to proxy advisors and investment consultants respectively.
- For the first time, issuing guidance to support signatories in demonstrating how they have implemented stewardship throughout the year.
- Introducing Policy and Context disclosures to be updated only as necessary.
- Testing whether the updated Code could better enable signatories to use cross-referencing to disclosures they make to meet other requirements or frameworks to support their reporting against the Code.
We welcome comments on the revised Code from our stakeholders and to help you consider the proposed changes, within the Consultation Paper we have included:
- Appendix A: Full list of consultation questions;
- Appendix B: Proposed updated UK Stewardship Code;
- Appendix C: Mapping of updated UK Stewardship Code and 2020 Principles; and
- Appendix D: Sample guidance for a Principle
Responses on the questions set out in this consultation document are requested by Wednesday 19 February 2025. Responses should be sent by email to [email protected]. Consultation responses will be published unless respondents request anonymity.
Roundtable attendance - expression of interest form
The FRC is holding a series of roundtable discussions throughout the consultation period for stakeholders to share their view on the proposals. Roundtables will take place in person at the FRC, 125 London Wall, EC2Y 5AS unless otherwise stated.
Please complete this form to register an expression of interest to attend a roundtable.
The events are primarily designed for current or prospective signatories to the Code, but other interested stakeholders are welcomed. Places will be allocated on a first-come, first-served basis, and confirmed via email.
| Date | Time | Location |
|---|---|---|
| Wednesday 27 November | 15:00 – 16:30 | London Wall |
| Tuesday 3 December | 15:00 – 16:30 | London Wall |
| Tuesday 10 December | 13:00 – 14:30 | Online |
| Wednesday 8 January | 15:30 – 17:00 | London Wall |
| Tuesday 14 January | 15:00 – 16:30 | London Wall |
| Thursday 16 January | 14:00 – 15:30 | Online |
| Wednesday 22 January | 15:30 – 17:00 | London Wall |
| Wednesday 29 January | 09:30 – 11:00 | London Wall |
| Wednesday 5 February | 15:30 – 17:00 | London Wall |
| Tuesday 11 February | 14:00 – 15:30 | Birmingham |
| Date TBC | Time TBC | Edinburgh |
Current signatories to the 2020 Code should report as usual in 2025 to maintain signatory status. We will provide information to signatories upon launch of the updated Code to ensure a smooth transition ahead of reporting in 2026.