Socially responsible investment group applauds UK Stewardship Code

Promoting socially responsible investment is one of the objectives of the UK Stewardship Code launched on Friday (July 2nd) by the Financial Reporting Council (FRC).

The insistence of fund managers on high-quality engagement from individuals responsible for investment will be crucial to effective implementation of the Code, according to one socially responsible investment group.

UK Sustainable Investment and Finance Association chief executive Penny Shepherd said the organisation welcomed the focus on pension fund trustees and noted financial advisers also had ’an important role to play’ in helping individuals assess how well professionals protect their wealth.

FRC’s new code covers monitoring of companies specialising in private wealth management and reporting to clients and the public.

Baroness Hogg, chairwoman of the group, commented: ’We hope this new code will be a catalyst for better engagement between shareholders and companies and create a stronger link between governance and the investment process.’ADNFCR-2318-ID-19873382-ADNFCR