Overview

The Financial Reporting Council (FRC) has today published the UK Stewardship Code (Code) for institutional investors, the first of its kind in the world, to sit alongside and be complementary to the UK Corporate Governance Code for listed companies, published in June 2010.

The Code is the result of recommendation by Sir David Walker following his review of corporate governance in the financial sector. It aims to enhance the quality of engagement between institutional investors and companies to help improve long-term returns to shareholders and the efficient exercise of governance responsibilities and to fill a perceived gap in corporate governance that emerged during the recent economic crisis.

Following a consultation, the FRC decided to adopt the code published by the Institutional Shareholders' Committee with certain amendments and rename it the UK Stewardship Code.

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