FRC launches Stewardship Code consultation

A consultation has been launched regarding a new Stewardship Code that will apply to institutional investors.

The Financial Reporting Council (FRC) is carrying out the move, which aims to set out best practice for those who engage with the UK listed companies they invest in.

Views on how adoption of standards can be encouraged and the arrangements that can be put in place in order to ensure the code is adhered to are being sought by the FRC, which is carrying out the consultation at the request of the government and is responsible for ensuring confidence in corporate governance and reporting.

The plan is to base the Stewardship Code on the regulations outlined by the Institutional Shareholders’ Committee in November 2009 and interested parties have until 16 April 2010 to make their feelings known.

Chairman of the FRC Sir Christopher Hogg remarked: ’The code must set standards of stewardship to which mainstream institutional investors should aspire and maintain the credibility and quality of these standards.’ADNFCR-2318-ID-19564997-ADNFCR