The UK Stewardship Code 2020 took effect on 1 January 2020 and sets high expectations of those investing money on behalf of UK savers and pensioners, not just in equities, but in other asset classes, including real estate and infrastructure. It defines stewardship as the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society.
You can find more information on the FRC Stewardship Code webpage.
Watch the replay of our Member Event (Feb 2021) 'An Introduction to the Stewardship Code' - We held a roundtable for our members, aimed at those who are less familiar with the Code and are deciding whether they would like to become signatories. It covered some of the challenges of reporting on real estate and some other key information. Watch the replay of the event here.
Related links/materials:
- February 2021 - Watch the replay of our AREF member roundtable here.
- December 2020 - Putting Stewardship at the Heart of Sustainable Growth. Through AREF's partnership with The Investment Association (The IA), AREF members can take advantage of a report the IA have recently published “Investing with purpose; putting stewardship at the heart of sustainable growth”. This report explores the ‘step change’ needed to embed stewardship beyond listed equities and into other asset classes and includes a section on stewardship in real estate and infrastructure (see page 33).
- September 2020 - The FRC has published a Review of Early Reporting to the Stewardship Code. The purpose of the Review is to support prospective signatories in meeting this new reporting requirements.
- March 2019 - The Stewardship Code was revised following a consultation which closed on 29 March 2019. To find out more about the consultation and read the Feedback Statement, please click here.
- In January 2019 - the FRC and the Financial Conduct Authority (FCA) published a Discussion Paper, Building a regulatory framework for effective stewardship (DP 19/1). The FCA has published a Feedback Statement in response to the feedback.
- The UK Stewardship Code 2020
- The IA's Report 'Investing with purpose; putting stewardship at the heart of sustainable growth'
The Investment Associations Stewardship Reporting Working Group (for IA members):
The IA’s Stewardship Reporting Working Group supports IA members to meet new stewardship reporting requirements such as becoming signatories to the UK Stewardship Code; meeting their obligations under the Shareholder Rights Directive II and client reporting, such as responding to pension scheme SIP regulation. The group is a forum for the IA to update members on regulatory and market developments; to hear feedback from members on issues of concern and feed this back to regulators and policymakers and is also a forum for members to provide peer support and discuss best practice.
The Working Group meets on an ad hoc basis and reports into the IA’s Stewardship Committee. The working group is open to all IA fund members involved in stewardship reporting, for example from stewardship, investment, compliance, or legal teams. For more information, IA members should contact [email protected].
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