FRC to reveal asset managers' stewardship failings

300 firms at risk

Asset managers which fail to engage properly with companies over pay and corporate governance will be exposed by the regulator in a new report.

The Financial Reporting Council (FRC) will reveal in a report due out next July which of the 300 asset manager signatories of its stewardship code have been failing to meet its expectations, the Financial Times reports. The stewardship code, which was created in 2010, covers issues such as pay, investment strategy, succession and audit quality. But the FRC has recently become increasingly concerned by issues such as the growing number of overseas investors in the UK and the reliance on shareholder advisory groups or proxy voting agencies. As a result, the regulatory body intends to...