British asset managers face firmer checks on investment policy
British asset managers are facing sterner checks on how they hold company assets along with considering environmental, social, and governance factors including climate change.
The Financial Reporting Council (FRC) published on Thursday Stewardship Code which imposes tougher demands from investors to invest in more “sustainable” assets that do not destroy or harm the environment.
The existing code is asking funds to outline their investment policies.
“The FRC will be holding signatories to account by regular review of the adoption of the new code and the quality of the reporting against its principles,” said FRC Chief Jon Thompson.
The revised code will be applicable to advisers of asset managers as well as pension funds, insurers, private equity, fixed income, infrastructure, and investments outside UK.
“The most significant change will come from the new reporting requirements, enabling investment managers to demonstrate the tangible change their engagement with companies can bring and allowing savers and investors to judge the outcomes they deliver on their behalf,” said the Investment Association.
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