U.K. updates pension and asset manager rules, but internal auditors flag governance gaps
By 
Ruth Prickett2025-07-09T19:15:00
Will “taking an axe to” red tape and onerous reporting commitments free up trillions invested in U.K. pensions and increase the value of assets managed by regulated financial services firms? The U.K. government is keen to increase flexibility and reduce regulatory and other compliance burdens to promote investment and economic growth. But governance experts are pointing to past corporate failures and arguing that any relaxations should be matched with stronger expectations for internal assurance to protect asset owners in unregulated firms.
On June 3, U.K. financial regulator, the Financial Reporting Council (FRC), published revisions to The Financial Stewardship Code, a best-practice framework for asset managers. The changes are intended to reduce the reporting burden for signatories by 20% to 30% and provide a more flexible reporting structure. The revisions will come into effect on January 1, 2026.
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