Application of the FRC Stewardship Code 2010

The Walker Review was set up by the last Government to examine the role of U.K. banks and other financial institutions in the 2008/9 financial crisis. One of Walker’s recommendations was that institutional investors should improve the extent and effectiveness of shareholder engagement with companies. Walker also recommended that the Financial Reporting Council (FRC) should have responsibility for a new stewardship code which would set out best practice in respect of shareholder engagement.

In July 2010 the FRC published the stewardship code. DMGT Pensions contributed to the development of the stewardship code through its membership of, and participation in, the National Association of Pensions Funds (NAPF). The NAPF submitted detailed responses to the FRC consultation exercise on the stewardship code.

The stewardship code is a set of best practice principles that are intended to frame both shareholder engagement with companies and the disclosure of such activity. It is intended that shareholders adhere to the principles using the familiar 'comply or explain' approach.

The statements of investment principles for the DMGT pension schemes endorse the stewardship code.

For further information regarding stewardship at DMGT Pensions, please contact Mike Weston, Head of Investment at DMGT Pensions.

DMGT Pensions application of the FRC Stewardship Code 2010