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FRC Streamlines Stewardship Code

Chris Hall

The UK’s Financial Reporting Council (FRC) has moved to reduce reporting burdens and streamline processes for signatories through a revamp of its Stewardship Code. The final phase will see a revised version of the code being published sometime during Q1 2025, with a likely effective date in January 2026. trillion (US$64.8

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UK Stewardship Code to Keep up with the Times

Chris Hall

Andrea Tweedie, Head of Stewardship at the Financial Reporting Council, highlights progress to date and calls for ‘good, bad and ugly’ feedback ahead of the upcoming review. It is easy to overlook how far stewardship has come,” she said. Long-term process The FRC’s Stewardship Code review will unfold in three different stages.

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A Step Forward for Stewardship

Chris Hall

“Asset owners in Germany and Belgium were basically following the asset managers’ lead on stewardship, as there is not much pressure applied on them to exert influence,” he said. “It The code is voluntary, but many institutional investors have signed up to it as a way of demonstrating their commitment to responsible investment.

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ESG Overload 

Chris Hall

This was followed in 2010 by high level reporting for the Financial Reporting Council’s (FRC) original Stewardship Code. In the UK this coincided with an updating of Stewardship Code reporting requirements and TCFD reporting for pension funds becoming mandatory.”

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FRC Stewardship Reframing Risks “Ambiguity”

Chris Hall

Proposed revision to stewardship definition seen as potentially weakening ambition and fostering distance between investment decisions and their impacts. A tweak to the Financial Reporting Council’s (FRC) definition of stewardship in a proposed update to the UK Stewardship Code has been received with alarm by asset owners and managers.