UK Stewardship Code public disclosures

The Walker Review on Corporate Governance concluded that there was a need for better engagement between asset managers acting on behalf of their clients, and the boards of the companies they invested in. The FSA publicly endorsed the Review and has now made it a requirement for firms (other than venture capital firms) managing investments for a professional client to disclose the nature of their commitment to the Stewardship Code, or their alternative investment strategy.

The Stewardship Code outlines good practice with regard to institutional investors’ engagement with the boards of firms in which they invest and is overseen by the Financial Reporting Council.

The FSA do not intend to exclude sub managers from the rule. The disclosure, which became mandatory from 6 December 2010, must be made clearly on a firm's website, or if it does not have a website in another accessible form. The IMS Group have a facility for firms to make their disclosure on www.pillar3.eu.

The UK Stewardship Code can be found here. 

 For wider commentary on the UK Stewardship code, see The IMS Group newsletter here.