Stewardship code gets backing of NAPF

The UK’s leading pensions body has today (Thurs) informed the Financial Reporting Council of its support for the Stewardship Code.

Through the National Association of Pension Funds (NAPF), whose members hold £800bn in assets, pension funds have made a significant contribution to the formulation of the Code.

The Code was published by the FRC in July and aims to improve and strengthen the dialogue between institutional investors such as pension funds and companies.

David Paterson, NAPF Head of Corporate Governance, said:

“The Stewardship Code complements the UK Corporate Governance code by setting out clearly the responsibilities of shareholders in encouraging higher standards of governance at the companies in which pension funds are invested.

“We expect pension funds to examine their investment managers’ approach to compliance with the Code. They will then be in a position to revise their Statements of Investment Principles and over time incorporate an analysis of stewardship into their investment manager review processes.”

The NAPF plans to provide guidance for its members on applying the Code.

Pension schemes which have signed up to the Stewardship Code will be listed on a new page on the FRC website which will be live from mid-October.