The Financial Reporting Council (FRC) published its updated list of UK Stewardship Code signatories on 22 July 2024, and NILGOSC is very pleased that its third Stewardship Report demonstrated continued efforts and improvements in the stewardship of the Fund’s assets, and continued to meet the FRC’s expected standard of reporting.
The UK Stewardship Code (the Code) which was last revised in 2019 sets high standards of stewardship for those investing money on behalf of UK savers and pensioners. The Code focuses on the activities and outcomes of stewardship. It is comprised of a set of 12 ‘apply and explain’ principles, and signatories are required to report annually on their stewardship policies, processes, activities and outcomes for a 12-month reporting period. During the rigorous review process, the FRC considers an organisation’s investment style, size and type, to determine eligibility. Today’s announcement brings the total number of signatories up to 289, representing £50.3 trillion of assets under management. NILGOSC’s report for the period ended 30 June 2023 is available to review at: Stewardship Report 2023.
Earlier in 2024, the FRC announced that it was undertaking a revision of the Code, to ensure that the principles are still driving the right stewardship outcomes for investors, while not unduly contributing to reporting burdens. A formal public consultation is expected to commence later in 2024, and the revised Code is expected to be published in early 2025. In the meantime, the FRC today announced it is making five immediate changes to significantly reduce the reporting burden on existing signatories.
To remain a signatory, all organisations must continue to improve their reporting as market practice and expectations evolve, and report annually. NILGOSC’s next report, covering the period to 30 June 2024, is due in May 2025.
