FRC publishes its 2022 review of stewardship reporting

  • FRC Image

28 Nov, 2022

The Financial Reporting Council (FRC) has published its ‘Review of Stewardship Reporting 2022’ ("the review").

The review sets out key messages from stewardship reports assessed in spring 2022, sets out expectations for reporting in 2023, and outlines changes to the application deadlines for 2023.  To support stakeholders' continued improvement, the review also gives guidance on the reporting of exercising rights and responsibilities and monitoring and holding third-party managers to account.

The FRC has seen improvements in a number of areas.  These include:

  • The quality of activity and outcome reporting for engagement, collaboration and escalation.
  • Signatories’ contributions to addressing market-wide and systemic risks, and improving the functioning of financial markets.
  • How signatories monitor and hold to account third parties, such as asset managers and service providers.
  • Increased transparency of organisational purpose.
  • Stewardship in asset classes other than listed equity, such as fixed income and real estate.

However, the report also notes that there still needs to be greater emphasis by signatories on reporting their activities and outcomes during the reporting period, using both quantitative and qualitative evidence.

In 2023 the FRC's key areas of focus will include reporting on the outcomes of engagament providing case studies to illustrate both the activity in the year and progress towards those outcomes.  

press release and the full review are available on the FRC website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.