UK: FRC begins Stewardship Code consultation

The Financial Reporting Council has today published a consultation paper concerning the content, operation and oversight of the proposed Stewardship Code for institutional investors: see here (pdf). More specifically, the FRC is seeking views on the following questions:

• Whether the code published by the Institutional Shareholders’ Committee in November 2009 provides a suitable basis for the Stewardship Code, in either its existing or an amended form.
• What the responsibilities for engagement of institutional shareholders and their agents are to the beneficial owners whose money they manage.
• How adoption of the standards in the code by UK and foreign investors can be encouraged.
• What information investors should disclose on their engagement policy and practice.
• What arrangements should be put in place to monitor how the code is applied.