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The Association of Chartered Certified Accountants (ACCA) has welcomed the Financial Reporting Council’s (FRC) draft UK Stewardship Code 2026 but urged more tailored guidance for asset managers and owners.
The accountancy body said a stronger focus on reporting the impact of stewardship activities was the best way to demonstrate progress towards investment goals. It called for a balanced and holistic approach to explaining both actions taken and the outcomes achieved.
Mike Suffield, director of policy and insights at ACCA, said: “We strongly support the draft guideline’s focus on demonstrating the actual outcome of stewardship activities. That is why we support the creation of tailored guidance to help signatories to the Code to disclose and explain how effective they are in achieving investment goals.”
ACCA also pressed the FRC to provide more specific examples reflecting changes in the business environment, such as employment practices, and to encourage signatories to show how environmental and societal factors are integrated into investment decisions.
The body argued this would improve understanding of long-term sustainable value for clients and beneficiaries, while also addressing wider global challenges.
Fraud prevention was highlighted as another area requiring attention, particularly with the “failure to prevent” offence under the Economic Crime and Corporate Transparency Act coming into force on 1 September 2025.
Rachael Johnson, head of risk management and corporate governance at ACCA, added: “We encourage the FRC to address the role of stewardship concerning fraud risk oversight and prevention, given today’s accelerating threats and their devastating effects on the economy and society at large.
“Board members and investors have crucial roles to play in identifying cultural, governance and control weaknesses that enable the systemic nature of fraud.”
