FRC consults on updated UK Stewardship Code

Written by Adam Cadle

07/02/2025

The Financial Reporting Council (FRC) has launched a consultation on proposed revisions to the UK Stewardship Code, including changes to amend the definition of stewardship and reduce industry reporting requirements.

The FRC said that the draft revised code should continue to drive effective stewardship by supporting high quality disclosures and appropriately reflects developing stewardship practice.

It also reassured the industry that proposed changes do not place onerous reporting burdens on signatories.

In particular, the FRC has proposed a change in the code's definition of stewardship to support more transparent conversations between actors in the investment chain about their investment beliefs and objectives, while being sufficiently broad to be applicable to signatories across the investment chain and different asset classes.

It also suggested streamlining the principles with more concise reporting prompts to help concentrate reporting on the most insightful areas of reporting, while reducing the volume.

In addition to this, the FRC proposed tailoring the service provider principles to include some that are dedicated to proxy advisors and investment consultants respectively.

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