The UK Stewardship Code has had ‘substantial and ambitious’ revisions from the Financial Reporting Council (FRC), establishing a clear benchmark for stewardship as the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society.

Key changes in the new Code include an extended focus that includes asset owners, such as pension funds and insurance companies, and service providers as well as asset managers and an annual reporting requirement on stewardship activity and its outcomes.

The new Code, which takes effect on 1 January 2020, building on the success of the previous Code, but sets a substantially higher standard, reflecting the changing expectations of investors and the significant developments in sustainable and responsible investment and stewardship since the Code was last revised in 2012.

Business Secretary Andrea Leadsom said: "This Code is an important piece of work by the Financial Reporting Council under its new leadership. It recognises the essential role of effective stewardship in supporting stronger corporate governance, diversity and social environmental priorities. I urge asset managers and owners to lead by example and sign up.”

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