Stewardship Code and other guidance for institutional investors

The UK Stewardship Code was initially published in July 2010 with the aim of enhancing the quality of engagement between institutional investors and companies, so as to help improve long-term returns to shareholders and provide for the efficient exercise of governance responsibilities by setting out good practice on engagement with investee companies that institutional investors should aspire to. As with the UK Corporate Governance Code, the UK Stewardship Code is applied on a comply-or-explain basis. In 2012 the Financial Reporting Council consulted on a number of changes to the Stewardship Code, with the changes taking effect from October 1, 2012 and the Financial Reporting Council now categorises signatories to it based on the quality of their Stewardship Code statements. Other bodies such as the Institutional Shareholders Committee and the the Pensions and Lifetime Savings Association in the UK have also provided guidance to institutional investors on their responsibilities as shareholders. In its December 2017 Consultation on the new UK Corporate Governance Code, the Financial Reporting Council sought views on the future direction of the Stewardship Code. It consulted on a revised Stewardship Code in January 2019 – the revised code is currently expected to be published in October 2019.

Stewardship Code

FRC and other developments in relation to Stewardship Code

Other guidance

Role of proxy advisors

Other reports and developments