FRC Showcases Investor Backing for Stewardship Code
News types: Publications
Published: 19 October 2010
The Financial Reporting Council (FRC) today publishes for the first time the names of the UK and international institutional investors who have signed up to the Stewardship Code.
A total of 68 institutions have published statements of support for the Code, including 48 asset managers, 12 asset owners and eight service providers.
“A critical mass of investors is coming through and this is a very important first step”, said FRC Chairman, Baroness Hogg.
“Not only do we wish to see these numbers increase, but we also want to see a better integration of governance and investment processes that will be vital in ensuring effective implementation of the Code. In that respect, actions will speak louder than words”, she added.
As well as leading UK institutions, the Code has attracted the support of a wide range of international investors, including the California Public Employees Retirement Scheme (CalPERS) and the Australian Council of Superannuation Investors.
The Stewardship Code was launched by the FRC on 2 July and aims to promote more active discussion between company boards and investors as a basis for improving the quality of corporate governance and long-term company performance.
Commenting on the level of investor support for the Stewardship Code, FRC Chairman Baroness Hogg said:
“I am delighted that the Stewardship Code is now up and running with such a high level of public commitment from investors to the principles set out in the Code. Effective dialogue between company boards and shareholders is an essential part of good governance, promoting constructive challenge and a focus on long term value creation.
“The Code has attracted high calibre support from institutional investors, including international investors. This shows that the principle of stewardship, and our method of delivery through the market, resonates broadly outside the UK. I hope this will provoke a debate on the concept of stewardship as a key plank of corporate governance throughout the EU and internationally.
“Clearly the continuing success of the Code will depend on how effectively investors deliver on their commitment to adopt it and the FRC will be monitoring the degree to which today’s public statements of support are implemented in practice”.
Business Secretary Vince Cable said:
“Increasing effective shareholder engagement is central to rebuilding trust in the corporate sector and will encourage long-term planning for growth.
“I am pleased to see that the Stewardship Code has attracted support from across the industry, reflecting that the UK is leading the way in this important area. I would encourage more investors to pledge their support and adhere to these best practice principles”.
Notes to Editors
The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.
Document created under a former FRC operating body.