Changes are also being made to the UK Stewardship Code. The Stewardship Code, which relates to institutional investors and their engagement with UK listed companies, was introduced by the FRC in July 2010. It is not applicable in Ireland and the ISE have indicated in the past that it did not intend to introduce a similar code here.
As with the Corporate Governance Code and Guidance on Audit Committees, the new changes follow a public consultation which closed on 13 July 2012 and a feedback statement published on 28 September 2012 along with a new edition of the code.
The proposed changes to the code, following the feedback from the consultation, include:
- Clarifying what is meant by stewardship and to whom the code is directed;
- Clarifying the respective responsibilities of asset owners and asset managers; and
- Extending the guidance encouraging investors to disclose their policy on voting and the use made of any proxy voting or other voting advisory service, to encourage investors to also describe the scope of the services provided and identify the service providers.
Again the new edition of the code applies from 1 October 2012. For more information, please click here.