On 19 January 2010, the Financial Reporting Council (FRC) published a consultation paper on a Stewardship Code for Institutional Investors (the Code). The FRC agreed to take on responsibility of oversight of the Code at the request of the Government, following Sir David Walker’s final report on the corporate governance of banks and other financial institutions in November 2009.
In the consultation paper the FRC is seeking views on:
- Whether the code published by the Institutional Shareholders’ Committee in November 2009 provides a suitable basis for the Code, in either its existing or an amended form.
- What the responsibilities for engagement of institutional shareholders and their agents are to the beneficial owners whose money they manage.
- How adoption of the standards in the Code by UK and foreign investors can be encouraged.
- What information investors should disclose on their engagement policy and practice.
- What arrangements should be put in place to monitor how the Code is applied.
The deadline for comments on the consultation paper is 16 April 2010.
View FRC consults on Stewardship Code for Institutional Investors, 19 January 2010