U.K. Fund Managers Face Broader Guidelines on Transparency
- New FRC rule requires asset managers to report what they did
- FCA calls for funds to disclose engagement with companies
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A pair of U.K. regulators is demanding that asset managers change the way they interact with investors under new rules that require funds to provide more information on their business culture.
A key difference in the updated stewardship code from the Financial Reporting Council is that asset managers will have to report what they’ve actually done, rather than just their policies on stewardship. The effectiveness of the current rules is unknown, nine years after the industry first signed up.