The FRC publishes the new UK Stewardship Code 2026

9 June 2025

Last updated: 9 June 2025

ICAS

The Financial Reporting Council (FRC) has published the new UK Stewardship Code 2026.

The new Code takes effect from 1 January 2026. It aims to support long-term sustainable value creation while significantly reducing the reporting burden for signatories.

A transition year will operate in 2026 to support signatories adapting to the new Code.

Key features of the new Code

An enhanced definition of stewardship which focuses on the principle of stewardship as the creation of long-term sustainable value for clients and beneficiaries.
A reduced reporting burden with fewer Principles and shorter 'how to report' prompts instead of detailed reporting expectations, helping to eliminate 'box-ticking' approaches to reporting against the principles. Early evidence from the FRC suggests that signatories may be able to reduce reporting volume by 20-30% while maintaining quality.
A flexible reporting structure: Signatories can submit separate Policy and Context Disclosures and Activities and Outcomes Reports or combine them into a single document. The Policy and Context Disclosure will only need to be submitted once every four years.
Targeted principles: The Code now includes dedicated Principles for different types of signatories, including asset owners, asset managers, and for the first time, specific Principles for proxy advisors, investment consultants, and engagement service providers.
New guidance: Optional guidance is available to provide useful tips and examples to support effective implementation, particularly for those managing non-equity asset classes.