The code focuses on the importance of long-term success and sustainability.
In July 2018 the Financial Reporting Council (‘FRC’) has issued a revised UK Corporate Governance Code to reflect the changing business environment and help companies achieve the highest levels of governance. The Code is shorter and sharper than previous Codes, focuses on the importance of long-term success and sustainability, addresses issues of public trust in business and aims to ensure the attractiveness of the UK capital market to global investors.
The Association of Investment Companies (‘AIC’) has responded by issuing their own draft code which they hope will be endorsed by the FRC, Guernsey Financial Services Commission and Jersey Financial Services Commission. The AIC draft code is very similar to FRC code but removes those provisions more appropriate to trading companies (such as executive remuneration and workforce engagement). Internally-managed investment funds should note that these provisions my still apply to them though.
Read KPMG’s summary of the new code here
Link to the FRC’s new code
Link to the FRC’s guide on Board effectiveness