The new 'Stewardship Code' of the United Kingdom

The United Kingdom, a pioneer in promoting good corporate governance in Europe, sets the trend again with the publication of the new UK Stewardship Code 2026, the benchmark for responsible behaviour of institutional investors.

The text, prepared by the Financial Reporting Council (FRC) —the British body equivalent, in part, to the CNMV and ICAC in Spain—, establishes the principles and best practices that should guide responsible asset management, with the aim of promoting transparency and accountability across the investment chain.

The Code applies to institutional investors, such as pension plans and funds, insurance companies, or foundations, as well as asset managers investing in the United Kingdom and, for the first time, to service providers linked to the investment ecosystem (such as advisors, proxy advisors, or management support consultants).

According to Marina Torres Díaz, partner of Corporate and Governance at ECIJA, “the reform seeks to adapt the Stewardship Code to a global context of sustainability and advanced governance, facilitating greater proportionality and clarity in how each adhering entity reports its actions.”

Main innovations of the 2026 Code

The new text introduces a more flexible reporting structure and a principles-based approach tailored to the different types of entities. Among its main innovations are:

A more precise definition of “stewardship,” focused on creating long-term sustainable value for clients and beneficiaries.

Simplification of the reporting framework, reducing administrative burdens for the adhering entities, promoting clearer and more useful communication.

Inclusion of service providers within the scope of application, recognizing their key role in responsible investment management.

A transition year (2026) to facilitate the adaptation of the approximately 300 entities already adhering to the current code, which will maintain their status while adjusting their processes to the new framework.

The UK Stewardship Code remains voluntary, under the principle of “apply and explain,” meaning that entities must apply all principles of the code, but in a proportional and tailored manner to their characteristics.

In Spain, the CNMV adopted this same approach in its Code of Good Practices for Investors (2023), to which nine entities are currently adhering, thereby aligning national trends with international standards of good governance and sustainability.

Conclusion

The UK Stewardship Code 2026 represents a significant step towards more responsible, sustainable, and transparent investment, reinforcing the United Kingdom's role as an international benchmark in corporate governance.

For Marina Torres, “this new framework represents an opportunity for entities operating in the United Kingdom or holding investments there to align their strategies with global standards of sustainability, good governance, and accountability.

Consult the complete article in the magazine of Legal News Aranzadi here.