Corporate Governance: FRC To Introduce Public Assessment Of Reporting Against Stewardship Code

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Shearman & Sterling LLP

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On 14 December 2015, the FRC announced that it will introduce public tiering of signatories to the Stewardship Code in July 2016 to improve reporting against the principles of the Stewardship Code and assist investors.
United Kingdom Corporate/Commercial Law

On 14 December 2015, the FRC announced that it will introduce public tiering of signatories to the Stewardship Code in July 2016 to improve reporting against the principles of the Stewardship Code and assist investors. The FRC stated that improved reporting will help asset owners judge how well their fund manager is delivering on their commitments under the Stewardship Code, help those who value engagement to choose the right manager and in consequence provide a market incentive in support of engagement.

To promote commitment to stewardship, the FRC will assess signatories' reporting against the Stewardship Code and make public its assessment. Signatories that meet reporting expectations on stewardship activities will be classed as Tier 1, with Tier 2 covering all those not meeting reporting expectations.

The FRC press release can be found at:

https://www.frc.org.uk/News-and-Events/FRC-Press/Press/2015/December/FRC-promotes-improved-reporting-by-signatories-to.aspx

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