The UK Stewardship Code (2026) is a voluntary framework issued by the Financial Reporting Council (FRC) that sets principles for effective investment stewardship. It promotes transparent, outcomes-focused reporting by investors and service providers. Finance professionals may use it to understand expectations for responsible capital allocation and long-term value creation.

Organisation behind the resource

The resource is developed and maintained by the Financial Reporting Council (FRC), the UK regulator responsible for corporate governance, stewardship and reporting standards. The FRC oversees the Code, provides guidance, and assesses applications from organisations seeking signatory status.

What the resource does

• Sets out a principles-based stewardship framework for asset owners, asset managers and service providers.
• Defines stewardship as the responsible allocation, management and oversight of capital to create long-term sustainable value.
• Requires signatories to apply and explain how they implement the principles in practice.
• Establishes structured reporting requirements:
• Policy and Context Disclosure (periodic)
• Activities and Outcomes Report (annual)
• Provides guidance and supporting materials to assist organisations in preparing reports and demonstrating outcomes.
• Offers a voluntary signatory regime that signals commitment to stewardship and transparency.

Target audience

The primary audience includes asset owners (e.g. pension funds, insurers), asset managers, and service providers such as investment consultants and proxy advisers. Secondary users include regulators, policymakers, researchers and stakeholders interested in governance and responsible investment practices.

Relevance to finance professionals

• Risk assessment – Supports identification and management of long-term financial risks, including governance, environmental and social factors influencing investment outcomes.
• ESG analysis – Encourages integration of ESG considerations into stewardship and investment decision-making through reporting and engagement practices.
• Investment context – Provides a framework for evaluating how capital is allocated and managed to deliver sustainable, long-term returns.
  Governance and stewardship practices – Offers guidance on engagement, monitoring, and accountability of investee companies and service providers.
• Reporting and compliance – Helps firms align with regulatory expectations for transparency and demonstrate stewardship activities to clients and beneficiaries.