UK Stewardship Code

Published: 30 September 2023

2 minute read

The UK Stewardship Code 2020

The UK Stewardship Code 2020 sets high stewardship standards for those investing money on behalf of UK savers and pensioners, and those that support them. Stewardship is 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.

The Code applies to:

  • Asset owners such as pension schemes, insurers, foundations, endowments, local government pension pools and sovereign wealth funds.
  • Asset managers who manage assets on behalf of UK clients or invest in UK assets.
  • Service providers such as investment consultants, proxy advisors, data and research providers that support asset owners and asset managers to exercise their stewardship responsibilities.

Current edition
Name The UK Stewardship Code 2020
Publication date 23 October 2019
Type Code
Format PDF, 235.2 KB

UK Stewardship Code 2020 Signatories

The FRC has released the UK Stewardship Code 2020 signatory list. The signatory list was updated on 21 February 2024.

The next deadline to apply to become a signatory is 30 April 2024 for Asset Managers and Service Providers and 31 May 2024 for Asset Owners.

Review of Reporting

The Review of Stewardship Reporting 2022 gives an overview of reporting from 2022 so far and outlines the FRC’s expectations for 2023 stewardship reporting, including some changes to the application deadlines. It will be useful for anyone preparing a report in application to the Code, whether an existing or prospective signatory.

This Review provides guidance on our expectations of reporting on two areas, adding to those we have covered in previous publications. The areas covered are:

  • Engagement and exercising rights and responsibilities
  • Setting expectations, monitoring and holding to account third-party managers

Effective Stewardship Reporting: Examples from 2021 and expectations for 2022 analyses reports from the first applications to the revised Code. The report focuses on four areas:

  • Market wide, systemic risk and well functioning markets
  • Non-listed equity
  • Outcomes
  • Engagement reporting

Our webinar on Investment stewardship also features highlights from the review and an insightful discussion with two Stewardship Code signatories.

The Principles

The Code comprises a set of 12 ‘apply and explain’ Principles for asset managers and asset owners, and a separate set of six Principles for service providers.

Become a signatory

To become a signatory to the Code, organisations must submit to the FRC a Stewardship Report demonstrating how they have applied the Code’s Principles in the previous 12 months. The report may cover any 12-month period beginning after 1 January 2020. The FRC will assess the report and if it meets our reporting expectations, the organisation will be listed as a signatory to the Code. Once listed, organisations must annually report to remain signatories.

The next deadline to apply to become a signatory is 30 April 2024 for Asset Managers and Service Providers and 31 May 2024 for Asset Owners.

Research

We have published research which explores the early impact of the revised Stewardship Code on the practice and reporting of asset managers and asset owners. The FRC commissioned this independent research in March 2021, carried out by a team of researchers from Minerva Analytics, the Durham University Business School and the Dickson Poon School of Law, King’s College London to better understand the current stewardship practices of asset managers and asset owners and to assess the impact of the revised 2020 Code.

  • The Influence of the UK Stewardship Code 2020 on practice and reporting (PDF)
  • Annex 1: Methodology, survey and interview questions from the Influence of the Stewardship Code research (PDF)
Research
Name The Influence of the UK Stewardship Code 2020 on practice and reporting
Publication date 5 July 2022
Type Report
Format PDF, 3.0 MB
Name Annex 1: Methodology, survey and interview questions from the Influence of the Stewardship Code research
Publication date 5 July 2022
Format PDF, 1005.8 KB

Topics

Types