The Financial Reporting Council (FRC) has published the first Stewardship Code for institutional investors following the publication in May of the updated UK Corporate Governance Code for listed companies.
The Code includes principles on:-
- The monitoring of investee companies;
- The escalation of activities taken to protect or enhance shareholder value;
- Collective engagement;
- Voting policy;
- Managing conflicts of interest; and
- Public reporting and reporting to clients.
The purpose of the Code is to improve the quality of corporate governance through promoting better dialogue between shareholders and company boards, and more transparency about the way in which investors oversee the companies they own.
The FRC is encouraging all institutional investors to report publicly on the extent to which they follow the Code. From the end of September 2010 the FRC will maintain on its website a list of all those who have done so. Click here to access the Implementation of the UK Stewardship Code