• New Guidelines for Institutional Investors
  • August 23, 2010 | Authors: Charles E.G. Ashton; Christopher Raggett; Martin Thomas
  • Law Firm: Hunton & Williams - London Office
  • Institutional investors have been criticised, especially since the financial crisis, for failing to take a more active role in the governance of the companies that they invest in. In response to these criticisms, the Financial Reporting Council (the “FRC”) issued the UK Stewardship Code (the “Code”) at the beginning of July 2010. The Code is a new set of guidelines that outlines best practice for institutional investors on how they should engage with investee companies. It is designed to sit alongside the revised UK Corporate Governance Code that the FRC issued in May 2010.