UK Watchdog Simplifies Investor Rules to Cut Reporting Up to 30%

The UK’s accounting watchdog has rejiggered its management rules for large investors to cut the reporting burden and focus on long-term sustainability.

The Financial Reporting Council released its revised Stewardship Code Tuesday in the first major update since 2020. The code is not mandatory, but is followed by nearly 300 asset managers with about £50 trillion ($68 trillion) collectively in assets under management. The changes take effect at the start of next year.

• The definition of stewardship has been changed to emphasize the importance of sustainable value creation, which was not mentioned previously. Detailed reporting requirements have also been ...