U.K. asset managers to focus on investor engagement outcomes under new reporting guidance
By 
Ruth Prickett2025-12-02T23:19:00
Asset managers preparing to report under the U.K.’s updated Stewardship Code, which starts on Jan. 1, 2026, should focus on engagement outcomes and evidence of impact. New guidance published by the U.K. financial regulator provides case studies and checklists to help companies comply with the new reporting regime.
Evidence of impact from engagement activities is central to the revised Code. While engagement between investors and large businesses is still considered essential by many businesses globally (The Harvard Law School on Corporate Governance wrote about this on Nov. 18), the US Federal Government is diverging from the EU and U.K. on some elements – particularly around sustainability issues. The revised Code indicates that the U.K. remains keen to promote active engagement, while also reducing the compliance burden.
Related articles
-
ArticleFRC’s plans for more flexible enforcement gains support
Plans to give the U.K.’s audit regulator more options to regulate firms for sloppy work have been largely well received by experts, who believe the current system is “inflexible,” “cumbersome,” and “slow.”
-
News BriefFRC fines PwC, auditor combined $4.1M over 2019 work of Wyelands Bank
The U.K. Financial Reporting Council issued penalties against PwC and a former auditor over deficiencies on work related to the 2019 financial statements of now shuttered Wyelands Bank.
-
News BriefFRC launches probe into MacIntyre Hudson’s 2022 audit of collapsed LSG
The U.K. Financial Reporting Council has launched an investigation into MacIntyre Hudson’s audit of collapsed construction company ISG Limited, which abruptly entered administration in September, laying off 2,200 workers.
More from Regulatory Policy
-
ArticleNew regulatory regimes for U.K. and EU ESG ratings firms could increase compliance costs
Environmental ratings are becoming big business as companies seek proof of sustainable and socially beneficial conduct. Firms that issue ratings on environmental, social and governance (ESG) performance are set to be regulated in the EU and U.K.
-
News BriefFDIC eases leverage rules for banks, citing lower risk burdens
The U.S. Federal Deposit Insurance Corporation issued a final rule to change the leverage capital requirements for both large and community banks. The agency said the modification will ”reduce disincentives a banking organization may have to engage in lower-risk activities.”
-
ArticleU.K. Cyber Security and Resilience bill set to regulate critical infrastructure suppliers
Suppliers to the U.K. critical infrastructure will face new regulations to ensure they are protected from cyberattacks. The Cyber Security and Resilience Bill, introduced on November 12, also raises penalties for breaches and expands regulator powers to label certain suppliers as critical.