New research (July 2022) of Financial Reporting Council shows positive impact of revised Stewardship Code
Written
05.07.2022
Source
FRC
Social
A recently published research, commissioned by the Financial Reporting Council (FRC), which is responsible for the oversight, monitoring and development of the UK Stewardship Code, has identified the positive impact the revised UK Stewardship Code has had on the practice and reporting of asset managers and owners. The FRC hat commissioned this independent study to better understand the current stewardship practises of asset managers and asset owners in areas covered by the UK Stewardship Code 2020 and to assess the impact of the revised Code on stewardship practices.
The research focused on the following themes:
Governance
Resourcing
Engagement, collaboration, and escalation
Monitoring and reporting
Organisational context.
The research included a survey with asset managers and interviews with asset managers and asset owners conducted 2021. The survey, which polled 55 asset managers and owners, found that both groups were very positive about the impact of the Code and that there was clear evidence of significant changes in practice in the areas of governance, resources, stewardship activities, results and reporting. All organizations in the sample had undertaken some organizational restructuring to better integrate stewardship into their investment decisions, a new requirement of the Code. Asset owners indicated that the Code now better enables them to monitor their investment managers. Respondents also supported the Code's contribution to industry-wide change.
Source & Copyright: Financial Reporting Council (FRC), Dr. Anna Tilba, Principal Investigator/Academic, Durham University Business School, Sarah Wilson, Principal Investigator/Industry, Minerva Analytics, Dr. Dionysia Katelouzou, Co-Investigator/Academic, The Dickson Poon School of Law, King’s College London, Ruth Hannigan, Research Assistant, Minerva Analytics, July 05, 2022
The research focused on the following themes:
Governance
Resourcing
Engagement, collaboration, and escalation
Monitoring and reporting
Organisational context.
The research included a survey with asset managers and interviews with asset managers and asset owners conducted 2021. The survey, which polled 55 asset managers and owners, found that both groups were very positive about the impact of the Code and that there was clear evidence of significant changes in practice in the areas of governance, resources, stewardship activities, results and reporting. All organizations in the sample had undertaken some organizational restructuring to better integrate stewardship into their investment decisions, a new requirement of the Code. Asset owners indicated that the Code now better enables them to monitor their investment managers. Respondents also supported the Code's contribution to industry-wide change.
Source & Copyright: Financial Reporting Council (FRC), Dr. Anna Tilba, Principal Investigator/Academic, Durham University Business School, Sarah Wilson, Principal Investigator/Industry, Minerva Analytics, Dr. Dionysia Katelouzou, Co-Investigator/Academic, The Dickson Poon School of Law, King’s College London, Ruth Hannigan, Research Assistant, Minerva Analytics, July 05, 2022