FRC gives 40 investment firms six months to improve reporting standards

Risk being removed from Stewardship Code

Wealth managers Brewin Dolphin and Charles Stanley are among firms identified by the Financial Reporting Council (FRC) as being in need of "significant reporting improvements" under its Stewardship Code.

In a report released today, the FRC divided nearly 300 asset managers and asset owners into three tiers based on the quality of their reporting standards under the Stewardship Code. The Code was launched in 2010 with the aim improve corporate oversight and enhance the quality of engagement between asset managers and the companies they invest in to improve long-term risk-adjusted returns to shareholders. The FRC said it had seen significant improvement in reporting standards, with some 120 firms listed in Tier 1, up from just 40 when the Code was first launched, representing nearly 90%...