Stewardship Code and other guidance for institutional investors

The UK Stewardship Code was initially published in July 2010 with the aim of enhancing the quality of engagement between institutional investors and companies, so as to help improve long-term returns to shareholders and provide for the efficient exercise of governance responsibilities by setting out good practice on engagement with investee companies that institutional investors should aspire to. As with the UK Corporate Governance Code, the UK Stewardship Code is applied on a comply-or-explain basis and the Financial Reporting Council categorises signatories to it based on the quality of their Stewardship Code statements. Other bodies such as the Institutional Shareholders Committee and the the Pensions and Lifetime Savings Association in the UK have also provided guidance to institutional investors on their responsibilities as shareholders. The Financial Reporting Council published the 2020 UK Stewardship Code in October 2019 to take effect from January 2020.

Stewardship Code

• Stewardship Code 2020 - October 2019
• FRC removes Tier 3 2020 categorization for Stewardship Code signatories – August 2017
• Stewardship Code - September 2012

FRC and other developments in relation to Stewardship Code

• FRC: Significant updates to the UK Stewardship Code announced - July 2024
• FRC: Corporate governance and stewardship mythbuster - February 2023 
• FRC: The influence of the UK Stewardship Code 2020 on practice and reporting – Research study - July 2022
• FRC: Successful signatories to UK Stewardship Code listed – September 2021
• FRC Feedback Statement: Consulting on a revised UK Stewardship Code – October 2019
• FRC Proposed revisions to the UK Stewardship Code – January 2019
• FRC and FCA Building a framework for effective stewardship – joint discussion paper – January 2019
• FRC Feedback Statement consulting on a revised UK Corporate Governance Code - July 2018
• FRC Proposed revisions to the UK Corporate Governance Code - December 2017
• FRC Developments in Corporate Governance and Stewardship 2016 – January 2017
• FRC Developments in Corporate Governance and Stewardship 2015 – January 2016
• FRC Promotes improved reporting by signatories to the Stewardship Code – December 2015
• IA Fifth report on adherence to the FRC’s Stewardship Code – June 2015
• FRC Developments in Corporate Governance and Stewardship 2014 – January 2015
• IA Fourth report on adherence to the Stewardship Code - May 2014
• FRC Developments in Corporate Governance 2013: The impact and implementation of the UK Corporate Governance and Stewardship Codes, December 2013
• FRC Developments in Corporate Governance 2012: The impact and implementation of the UK Corporate Governance and Stewardship Codes, December 2012
• FRC Feedback Statement: Revisions to the UK Stewardship Code - September 2012
• FRC Revisions to the UK Stewardship Code - April 2012

Other guidance

• PLSA: Stewardship and Voting Guidelines 2021 – March 2021
• Investment Association: Good Stewardship Guide 2021 – February 2021
• ICSA and the Investment Association The stakeholder voice in board decision making - September 2017
• IA Statement of Principles for Investment Managers – April 2015
• NAPF Responsible Investment Guide 2013 - May 2013
• Trade Union Share Owners Trade Union Voting and Engagement Guidelines - March 2013
• ICSA Guidance Enhancing Stewardship Dialogue - March 2013
• NAPF Stewardship Policy - November 2012
• ISC Code on the responsibilities of institutional investors - November 2009
• ICGN Statement Principles on Institutional Shareholder Responsibilities - July 2007

Role of proxy advisors

• ESMA Follow-up report on Best Practice Principles - December 2015
• The Best Practice Principles for Shareholder Voting Research 2014 – March 2014
• ESMA final report and feedback statement in relation to the proxy advisory industry - February 2013
• ESMA discussion paper on proxy advisory industry - March 2012

Other reports and developments

• ShareAction Report on Asset manager voting practices – In whose interests? – May 2015
• ICGN view point report “Stewardship does not benefit from differential ownership rights” - April 2015
• ICSA joins steering group to survey companies on investor engagement – February 2015
• BIS Progress Report on Implementation of the Kay Review – October 2014
• Note of BIS Roundtable, Practical and legal issues related to limiting the rights of short-term shareholders during takeover bids – October 2014
• The Law Commission Report on the fiduciary duties of investment intermediaries – July 2014
• IA Investor Forum appoints Chairman and Executive Director – July 2014
• ACCA Report on creating value through governance - July 2014
• European Commission Proposal to revise the Shareholder Rights Directive – April 2014
• ABI Collective engagement – Investor Exchange - February 2014
• Collective Engagement Working Group Report on collective engagement – December 2013
• Global Network of Director Institutes Paper on board and shareholder communications – December 2013
• Government’s response to report to the House of Commons Business, Innovation and Skills Committee’s report on the Kay Review – November 2013
• The Law Commission Consultation paper on the fiduciary duties of investment intermediaries - October 2013
• NAPF Stewardship Disclosure Framework for Asset Managers - October 2013
• ABI Report on corporate governance and shareholder engagement – July 2013
• NAPF Investor working group on collective engagement – July 2013
• ICAEW A dialogue in corporate governance – July 2013
• House of Commons Business, Innovation and Skills Committee The Kay Review of the UK Equity markets and long-term decision making – July 2013
• The Law Commission Review of fiduciary duties of investment intermediaries: Terms of Reference - March 2013
• BIS Ensuring equity markets support long-term growth - Government response to the Kay Review - November 2012
• ISCA Consultation paper on Improving engagement practices between companies and institutional investors - October 2012
• The Kay Review of UK equity markets and long-term decision making: Final Report - July 2012
• Investor Stewardship Workings Party 2020 Stewardship: Improving the quality of investor stewardship - March 2012