The Pensions and Lifetime Savings Association (PLSA) has today (Wednesday) welcomed plans by the Financial Reporting Council’s (FRC) to consult on a new Stewardship Code.
The FRC is consulting on a new Stewardship Code that sets substantially higher expectations for investor stewardship policy and practice. The Code will focus on how effective stewardship delivers sustainable value for beneficiaries, the economy and society.
Caroline Escott, Policy Lead, Investment and Stewardship at the PLSA, said:
“As investors, pension schemes are ideally placed to take the long-term approach to investing savers’ money. It's therefore vital that schemes and their managers work together to be good stewards to protect and enhance the value of people's savings. The UK has long been seen as a global leader on stewardship issues and the Stewardship Code has played a key part in this.
“However, there is room for improvement and we're pleased to see that many of these new proposals are in line with what our members have been calling for. Ensuring the Code clearly explains how the principles apply to asset owners should make it easier for them to make sure their asset managers are undertaking effective stewardship.
“We also welcome the specific reference to environmental, social and governance issues as these can represent significant risks and opportunities to companies, so it's important these are drawn out. We look forward to continuing to work with pension schemes and the FRC to help shape the new Code."
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