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The Long Game

Chris Hall

In 2015, the group also submitted its first application to the Financial Reporting Council’s (FRC) UK Stewardship Code. “An An approved Stewardship Code status is basically a baseline entry to pitch for institutional business around responsible investment,” Crossman explained.

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Managers not Committing to “Most Impactful” Stewardship Measures

Chris Hall

Despite strong progress by asset managers on stewardship since 2020, voting data disclosure and new policies “are not being matched by real-world action”, reports ShareAction. Regarding stewardship, ShareAction found high levels of transparency across voting and engagement, but noted gaps in key areas.

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Stewardship Dialogue Must be Ongoing – FCA

Chris Hall

Areas to be covered include the effectiveness of the FRC’s Stewardship Code in creating a market for stewardship, interaction between the code and existing stewardship-related rules in the FCA Handbook , and stewardship-related issues raised in the UK government’s updated Green Finance Strategy , released in March.

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A Missed Opportunity

Chris Hall

The concept of assessing what effective stewardship should look like was first introduced by the FCA in 2019 in a joint effort with the Financial Reporting Council (FRC), setting the groundwork which helped define what the minimum expectations should be for financial services firms investing on behalf of clients and beneficiaries.

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Trustees to Engage with Future

Chris Hall

Trustees can consult the UK Stewardship Code to monitor investment managers’ stewardship progress, as well as the Pensions and Lifetime Savings Association’s (PLSA) Vote Reporting Template and the Association of Member Nominated Trustees’ (AMNT) Red Lines Voting Initiative , the DWP said. .

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Stewardship Nears Breaking Point

Chris Hall

While 88% of asset managers disclosed their votes publicly (up from 55% in 2020), 42% failed to publish their rationale for votes against shareholder resolutions, the report said. Transparency is improving, but slowly.