The Financial Reporting Council (FRC) have launched the consultation on proposed updates to the Code.

The proposed changes include:

• Amending the definition of stewardship to support more transparent conversations between actors in the investment chain about their investment beliefs and objectives, while being sufficiently broad to be applicable to signatories across the investment chain and different asset classes.
• Streamlining the Principles with more concise reporting prompts to help concentrate reporting on the most insightful areas of reporting, while reducing the volume.
• Tailoring the Service Provider Principles to include some that are dedicated to proxy advisors and investment consultants respectively.
• For the first time, issuing guidance to support signatories in demonstrating how they have implemented stewardship throughout the year.
• Introducing Policy and Context disclosures to be updated only as necessary.
• Testing whether the updated Code could better enable signatories to use cross-referencing to disclosures they make to meet other requirements or frameworks to support their reporting against the Code.

PRI will prepare a draft consultation which will be shared with signatories in January.

We invite all signatories interested to provide feedback to Nikki King (nikki.king@unpri.org) or via this collaboration by Thursday 13 February 2025 COB.