The code, which was first published in 2010, now raises expectations for how money is invested on behalf of the UK savers and pensioners. The new code is set to establish a “clear benchmark” for stewardship.
The revisioned code is a “vital part of the comprehensive revision of the UK’s world-leading corporate governance framework that began with the introduction of the new UK Corporate Governance Code in January 2019.”
It now focuses on protecting the interests of UK savers and pensioners by “ensuring that their money is managed responsibly with a new emphasis on creating long-term value and on considering beneficiary and client needs”.
“The new code is set to “enhance the UK’s position as a destination for long-term, sustainable investment” and promote transparency in business, allowing wider benefits for the economy and environment.
The UK stewardship code will take effect on 1 January 2020.
Andrea Leadsom, business secretary, said: “The government is committed to making the UK the best place in the world to work and grow a business.
“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.”
Simon Dingemans, of the FRC, added: “This new Stewardship Code marks a step-change in the expectations for investors, their advisors, and how they manage investments for their savers and pensioners.
“It is an ambitious revision that strengthens the UK’s standards of governance, transparency and clear reporting.”