- FRC announces increase in signatories to the Stewardship Code
- PPF valuation assumptions – consultation closes
FRC announces increase in signatories to the Stewardship Code
The Financial Reporting Council has announced an increase in the number of signatories to the UK Stewardship Code. The total now stands at 254 and includes 179 asset managers, 58 asset owners and 17 service providers. The asset signatories now represent £46.4tn of assets under management.
The Stewardship Code sets high stewardship standards for asset owners (such as pension schemes) and asset managers and for the service providers (such as investment consultants) that support them in exercising their stewardship responsibilities. The Code comprises twelve ‘apply and explain’ principles for asset managers and asset owners and six separate principles for service providers. The latest edition of the Code took effect from 1 January 2020.
Comment
The latest list of signatories announced by the FRC includes Lane Clark & Peacock (as a service provider). We were in the first batch of signatories announced in September 2021 (see Pensions Bulletin 2021/37) and have had our signatory status successfully renewed.
PPF valuation assumptions – consultation closes
The Pension Protection Fund’s consultation on the updated assumptions it proposes to use for PPF entry and levy valuations (see Pensions Bulletin 2023/01) closed on 20 February 2023, with the PPF intending to introduce the changes for valuations with effective dates on or after 1 April 2023.
Comment
LCP responded to the consultation. Overall, we are supportive, in particular with the proposed move to a curve-based approach to determine the yields to use for entry valuations.
