2020 Update To The UK Stewardship Code

In March 2019, we reported that the UK’s Financial Reporting Council (“FRC”) was consulting on proposed changes to the UK’s Stewardship Code (the “Stewardship Code”) (see our previous memo here). Those consultations have led to an updated 2020 edition of the Stewardship Code, which will come into effect from January 1, 2020.

The reshaped 2020 Stewardship Code is a voluntary code which asset owners (like pension schemes and insurers) as well as asset managers and investment-related service providers (like proxy advisers and investment consultants) may choose to adhere to. It sets higher standards than the legal requirements that signatories may be subject to¹, though signatories may choose to use their Stewardship Report (which is not required to be in any particular form) under the Code to meet their legal, regulatory and other voluntary stewardship reporting requirements. UK authorised asset managers are required to report on whether or not they apply the