FRC statement on the publication of the IMA report on adherence to the FRC's Stewardship Code
News types: Generic Announcement, Policy Statements, Response, Statements
Published: 27 June 2013
Commenting on the Investment Management Association’s (IMA) 2012 report on adherence to the Financial Reporting Council’s (FRC) Stewardship Code by asset owners, asset managers and service providers, Stephen Haddrill, FRC CEO and chairman of the report’s steering committee said:
"The IMA’s study provides valuable evidence that stewardship is gradually becoming embedded in the way asset owners, asset managers and service providers operate. The FRC is supportive of the study, which is an important input to the FRC’s annual monitoring report of developments in UK corporate governance, and works closely with the steering committee to ensure that the report is objective and sufficiently independent of the industry.
The study shows that there has been a positive trend in several areas including levels of engagement, resources pledged to stewardship, collective engagement and reduction of conflicts of interest. However, we recognise that this is not the end of the story and there is always more to do to enhance stewardship. The survey showed that there is still a heavy focus on remuneration to the detriment of other corporate governance concerns and we believe that the debate between shareholders and companies needs to become more rounded.
More generally, we are pleased to note the sustained international interest in the UK Stewardship Code which itself has several European and US-based signatories. South Africa, Canada, the Netherlands and Switzerland each have in place their own version of the Code with many other countries planning to introduce stewardship requirements; a development we see as highlighting the importance of investor stewardship as an international business concern.”
Notes to editors:
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Since 2011, the FRC has produced an annual monitoring report on developments in corporate governance in the UK market. Download the most recent report (PDF). this year’s report is due to be published in December 2013.
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The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.