News November 2020 FRC statement in response to the Asset Management Taskforce report

FRC statement in response to the Asset Management Taskforce report

24 November 2020

The FRC commends all the organisations that worked together to develop the recommendations of the Asset Management Taskforce’s Investing with Purpose report. We welcome the report’s endorsement of the UK Stewardship Code as the best in class marker of effective stewardship and the recommendations that encourage investors and those that support them to apply and report against the Code.

We also welcome and accept the recommendations for the FRC. We support the introduction of global standards on non-financial reporting and will engage with organisations working to achieve that goal. In the meantime, the FRC encourages UK public interest entities to report against the Taskforce on Climate-related Financial Disclosures’ (TCFD) 11 recommended disclosures and, with eference to their sector, using the Sustainability Accounting Standards Board (SASB) metrics.

 On AGMs, the FRC will convene a Stakeholder Group which includes government, companies, and investors to consider recommendations for legislative change, propose alternative means to achieve flexibility, whilst maintaining the integrity of the AGM.

We look forward to continuing to work with other regulators and government departments, issuers, investors and other market participants to encourage effective and transparent stewardship that serves UK beneficiaries and savers and cements the UK’s position as a leader in Corporate Governance and Stewardship. 

Sir Jon Thompson, FRC CEO, said:

“The FRC is pleased to see the report of the Asset Management Taskforce and particularly welcome the endorsement of the UK Stewardship Code.  We encourage all the organisations involved in developing these recommendations to continue to collaborate to make stewardship effective and create long-term value for UK pensioners and savers.”