FRC lists successful signatories to the UK Stewardship Code
On 6 September, the Financial Reporting Council (FRC) published a list of successful signatories to the UK Stewardship Code (Stewardship Code).
The list marks the first time that names of signatories have been made public since last year’s revision of the world’s oldest stewardship code. The FRC received 189 applications from 147 asset managers, 28 asset owners, including pension funds and insurers, and 14 service providers, including data and information providers and investment consultants. Two-thirds of these made the list. The FRC has only published the names of the successful applicants. The previous iteration of the code had about 300 signatories.
The FRC noted that it was pleased to see investors better integrating stewardship and environmental, social and governance (ESG) factors into their investment decision-making; reporting on asset classes other than listed equity; and identifying the outcomes of their efforts. The FRC also noted that there was some strong reporting on underpinning governance activities.
The FRC's reasons for rejecting applications include a failure to address all the Principles of the Stewardship Code; failing to provide supporting evidence for their approach; and inadequate reporting on approaches to review and assurance and monitoring service providers.
Sir Jon Thompson, CEO of the FRC, said:
“Congratulations to all those who have become signatories to the UK Stewardship Code, which is recognised globally as a best-practice benchmark in investment stewardship. The publication of this list delivers on the recommendations of The Kingman Review in respect of stewardship and demonstrates our continued commitment to serve the public interest as we transform to becoming a new regulator. We are proud of our robust approach to assessment and encourage those who have been unsuccessful to reflect on our feedback and apply again in future.”
The FRC’s press release can be found here and the list of successful signatories here.
Published 6 September, 2021