FRC review helps Stewardship Code signatories prepare for streamlined reporting requirements under the new Code
News types: Codes and Standards Announcements
Published: 11 November 2025
The Financial Reporting Council (FRC) has today published a report to support signatories as they prepare to apply to the updated Code, which takes effect from 1 January 2026.
The publication, Preparing for the UK Stewardship Code 2026: applying insights from current reporting, provides practical insights and examples of effective reporting to the 2020 Code to help asset owners, asset managers, and service providers transition to the updated Code's new streamlined reporting structure.
This report showcases examples of high-quality reporting from recent successful signatories to the UK Stewardship Code 2020, illustrating how stewardship approaches can be communicated transparently across different asset classes and organisational contexts. This highlights the continuity of the fundamentals of good reporting, such as the attributes of effective engagement case studies, successful reporting of policies alongside evidence of their application, and insightful reporting on the oversight of managers.
The UK Stewardship Code 2026, published in June 2025 following extensive consultation with stakeholders, introduces a streamlined two-part reporting model that differentiates reporting on policies from activities. Signatories will submit a Policy and Context Disclosure every fourth year, with an annual Activities and Outcomes Report demonstrating how they have applied the Code's Principles in practice.
The revised Code has been designed to reduce reporting burdens whilst maintaining the high standards that underpin its reputation and impact. By allowing signatories to report their policies less frequently, the new structure enables organisations to focus their annual reporting on demonstrating stewardship activities and outcomes in a clear and engaging way.
Mark Babington, Executive Director of Regulatory Standards at the FRC, said:
"The new Code has paved the way for signatories to streamline their reports, without reducing the quality and usefulness of the information included. The FRC will continue to engage with stakeholders during the transition period where they have questions arising from the updated Code."
The newly published guidance supports signatories in reporting effectively under the updated Code. The guidance is optional and offers signatories suggestions on the information to include, how to explain their approach to stewardship, and what readers are most interested in understanding. It covers key areas including engagement reporting, selection and oversight of external managers, voting in listed equity, and stewardship in non-public equity asset classes.
To support a smooth transition, 2026 will operate as a transition year, with existing signatories maintaining their status provided they submit their first report to the updated Code during their usual application window in 2026.
Andrea Tweedie, Head of Stewardship, sat down with Director of Stakeholder Engagement and Corporate Affairs, Kate O’Neill to discuss the insights from this report and how they may help signatories through the transition year in the FRC’s latest In-Conversation podcast.