DWP Stewardship Regulations 2022
What you need to do as trustees
The Department of Work and Pensions (DWP) has recently published new stewardship guidance for trustees of UK pension schemes.
The new guidance centres around recognition that exercising stewardship is in the best interest of members. The new guidance comes into force for trustees preparing Implementation Statements for scheme years ending on or after the 1st of October 2022.
In summary, the guidance explains the DWP's expectations on two existing reporting requirements for trustees: Statement of Investment Principles (SIPs) and Implementation Statements.
- Trustees are required to set out in their SIP their policy in relation to engagement and the exercise of voting rights
- The Implementation Statement sets out evidence that schemes continue to follow and act on the principles outlined in the SIP. The guidance increases the level of reporting required on engagement and voting policies and activity, in particular with respect to ‘significant votes’
- The guidance suggests that trustees set stewardship priorities relevant to their scheme and summarise these in the SIP, with stewardship activity relating to these priorities being noted within Implementation Statements
Read our paper below which summarises the new guidance and what will be required of trustees.