Stewardship code aims to support corporate fiduciary

Corporate fiduciary is now subject to the first Stewardship Code for institutional investors, which has been published by the Financial Reporting Council (FRC).

The aim of the new initiative is to promote better communication between company boards and shareholders, improving corporate governance quality.

Principles included within the code are managing conflicts of interest in corporate fiduciary matters, reporting to clients and the public, monitoring investee firms and collective engagement.

The Stewardship Code was introduced by chairwoman of the FRC Baroness Hogg, who said the link between investment and governance should be bolstered.

’Disclosures made by institutions under the code should assist companies to understand the approach and expectations of their major shareholders,’ she stated, adding the Institutional Shareholders’ Committee helped shape the principles.

As the UK’s independent regulator for corporate governance, the FRC sets standards for corporate fiduciary and oversees the regulatory processes of professional accountancy bodies, as well as enforcing auditing and accounting standards.ADNFCR-2318-ID-19870914-ADNFCR