TheCityUK responded to the Financial Reporting Council's Stewardship Code Consultation. Our response set out the need to maintain and enhance the competitiveness of the UK’s Stewardship Code, while upholding high standards of corporate governance and responsible investment. It outlines:
- Our support for the revised definition of stewardship and the focus on long-term sustainable value. It sets out the need for clarity on the definition of sustainable and further work with other policymakers to ensure the framework around stewardship is consistent across the board.
- Support for the autonomy and flexibility the revised code provides; through the restructured principles and adapted approach for a range of signatories.
- A request for clarity on the expectations of signatories around the market-wide and systemic risk principle.
- Support for the two-part reporting structure with a call for the activity and outcome report submission to align with the update to avoid legal and compliance issues.
- The need for the FRC to continue to promote engagement as a central pillar of stewardship.
- Our support for greater emphasis on growth and the interests of those providing the productive capital necessary to drive growth, without losing sight of social and environmental concerns.