The Financial Reporting Council’s UK Stewardship Code
The UK Stewardship Code was published in July 2010 by the Financial Reporting Council (FRC). The FRC is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to encourage investment. The Code is addressed in the first instance to firms who manage assets on behalf of institutional investors.
The UK Stewardship Code aims to enhance the corporate governance between institutional investors and companies to help improve long-term returns to shareholders and the efficient exercise of governance responsibilities by setting out good practice on engagement with investee companies to which the FRC believes institutional investors should aspire.
The Financial Conduct Authority (FCA) has announced that all UK-authorised Asset Managers will need to produce a public statement of commitment to the Stewardship Code or explain why it is not appropriate to their business model from 6 December 2010 under FCA Rule COBS 2.2.3R.
John Laing Capital Management Ltd (JLCM)
JLCM is an investment manager based in the United Kingdom and authorised and regulated by the FCA. Our investment approach is to provide long-term distributions at levels that are sustainable to our clients, while keeping the interests’ of our clients’ paramount. We aim to align our approach with the broad aims of the UK Stewardship Code despite our investment policy, which requires the Company to invest in equity and/or subordinated debt issued in respect of infrastructure PFI/PPP projects the Company’s investment policy is such that it does not engage with UK listed investee companies and therefore the UK Stewardship Code in the context of our investment policy does not apply, nor do we consider that our clients would expect such engagement.