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15 March 2010

LSE promotes best practice in investor relations


“Investor Relations - A Practical Guide" provides practical assistance to companies, whether quoted or considering a stock market flotation, on best investor relations practice. It examines the key principles firms should consider when developing an investor relations strategy.

The London Stock Exchange is this week sending its new guide on investor relations to the companies which use its markets. "Investor Relations - A Practical Guide" provides practical assistance to companies, whether quoted or considering a stock market flotation, on best practice in investor relations. It examines the key principles firms should consider when developing their investor relations strategy.
The guide collates a wealth of expertise from a series of corporate advisers, quoted companies and investors. It also includes details the latest developments affecting investor relations, including the Companies Act 2006 provisions for electronic shareholder communication and AIM Rule 26, covering website disclosure for AIM companies.
The guide provides insight into:
  • the key stakeholders involved;
  • which people, internally and externally, comprise a company's investor relations team and their responsibilities; and
  • the tools and activities available to companies to effectively communicate their story to shareholders, potential investors, analysts and the media
Head of Equity Primary Markets, London Stock Exchange Group Tracey Pierce said:
"We are committed to providing the companies on our markets with the tools they need to communicate effectively with investors, and I feel sure that this guide, alongside our other initiatives, will help companies in building constructive long-term relationships with their investors and other stakeholders. Implementing a successful investor relations strategy is central to enhancing liquidity, gaining access to capital and can help create enhanced profile and a vibrant shareholder community around a company's stock."
CEO of the Quoted Companies Alliance Tim Ward said:
"The most effective quoted companies see shareholder engagement as a long-term, on-going dialogue rather than an activity they undertake occasionally. A thorough ongoing IR programme takes many forms, including meetings with investors and journalists, meaningful annual reports and effective websites.  The QCA is delighted to support this essential guide.  The information contained in this guide will support companies' understanding of these processes and the wider dynamics of shareholder engagement, helping the investment community to be more knowledgeable and confident about their current and prospective investments."
Chairman of the Investor Relations Society Richard Davies said:
"Properly used, the investor relations team will be the eyes and ears of the company in the market and will deliver valuable insight into market sentiment. This guide will act as a valuable tool for companies seeking to establish an effective dialogue with their shareholders and other financial market participants, and we hope that best practice investor relations will be embraced by all management teams."
The guide, now available at www.londonstockexchange.com, will be officially launched at the Exchange's offices in Paternoster Square in April.  The Exchange will also be arranging a series of roundtable meetings for companies around the UK to promote the importance of investor relations.
LSE guide


© LSE

Documents associated with this article

investor-relations.pdf


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