In November 2009, the Institutional Shareholders' Committee (ISC) published a new code of responsibility for institutional investors. The code sets out best practice for those institutions that choose to engage with companies as part of their investment strategy.
The code sets out seven main principles with guidance and applies on a comply or explain basis. Those institutional investors that do not wish to engage should state publicly that the code is not relevant to them and explain why. Institutions that elect to engage should provide a statement on how they implement the principles in practice and what steps have been or will be taken in respect of verification. Institutions that apply the code will be listed on the ISC's website.
The members of the ISC are the Association of British Insurers, the Association of Investment Trust Companies, the National Association of Pension Funds and the Investment Management Association.
View the ISC code on the responsibilities of institutional investors (6 page pdf).
View the ISC website (web page).