Association of Chartered Certified Accountants (ACCA) has expressed its approval of the Financial Reporting Council’s (FRC) proposed UK Stewardship Code 2026.
It highlighted the necessity for asset managers and owners to employ a comprehensive approach in their reporting practices, focusing on the actions taken and the results achieved.
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In its response, ACCA has called for the FRC to provide more detailed guidance in several key areas. This includes the need for specific examples that reflect the changing business landscape, particularly regarding new employment practices.
Furthermore, the ACCA encourages signatories to clarify how they incorporate environmental and societal factors into their investment strategies and engagement efforts.
ACCA noted that such transparency would assist asset managers and owners in grasping the long-term sustainable value for their clients and beneficiaries, thereby fostering greater trust and accountability in the industry.
ACCA Policy and Insights director Mike Suffield said: “We strongly support the draft guideline’s focus on demonstrating the actual outcome of stewardship activities.
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By GlobalData“That is why we support the creation of tailored guidance to help signatories to the Code to disclose and explain how effective they are in achieving investment goals.”
While the updated definition of stewardship underscores the creation of long-term sustainable value, ACCA has urged the FRC to place additional focus on the broader environmental and societal challenges that are currently prevalent.
Additionally, ACCA has identified fraud as a significant area requiring attention within the code, especially in light of the Economic Crime and Corporate Transparency Act’s “failure to prevent” offence, set to take effect on 1 September 2025.
ACCA Risk Management and Corporate Governance head Rachael Johnson said: “We encourage the FRC to address the role of stewardship concerning fraud risk oversight and prevention, given today’s accelerating threats and their devastating effects on the economy and society at large.
“Board members and investors have crucial roles to play in identifying cultural, governance, and control weaknesses that enable the systemic nature of fraud.”
