The Financial Reporting Council has begun consultation on a stewardship code that will set out good practice for institutional investors when engaging with the UK listed companies in which they invest. The FRC agreed to take on responsibility of oversight of the proposed code at the request of the government, following Sir David Walker's report on the corporate governance of banks and other financial institutions in November last year. FRC chairman Sir Christopher Hogg said: 'The benefits of a code which can help to bring about more effective engagement between companies and shareholders are potentially significant. 'They should lead to sustainable and enduring improvements in the governance and performance of UK listed companies, and greater clarity in respective responsibilities of asset managers and asset owners, which will assist the ultimate owners to hold to account those acting on their behalf.' The FRC is seeking views on: whether the code published by the Institutional Shareholders' Committee in November 2009 provides a suitable basis for the Stewardship Code, in either its existing or an amended form; and what the responsibilities for the engagement of institutional shareholders and their agents are to the beneficial owners whose money they manage. It also wants to know: how adoption of the standards in the code by UK and foreign investors can be encouraged; what information investors should disclose on their engagement policy and practice; and what arrangements should be put in place to monitor how the code is applied. Consultation ends n 16 April 2010 and the outcome will be announced in May or June.