Mark Hynes - thoughts on corporate disclosure

tag:blogger.com,1999:blog-138176902011-11-24T06:46:53.094ZMark Hynes - thoughts on corporate disclosureOpinions on changing rules, changing best practices, and their effect on investor relations officers.Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.comBlogger2161100tag:blogger.com,1999:blog-13817690.post-3348818122686184532011-06-30T14:37:00.000Z2011-06-30T14:37:12.947ZBorrowing some great ideas

It’s that time of year again. Across the land, IR, company secretarial and corp comms teams are gathering their thoughts about the direction their annual reports should take. What will the class of 2011 annual reports look like? So I was interested to see what “How does it stack up” from Radley Yeldar (see disclosures) had to say. This is against a background of changing regulation. Reporting is

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-26107925910895493932011-06-16T08:11:00.001Z2011-06-16T08:15:13.921ZIndependent research on the rise

New research from CSFI says the pre-eminence of the formal sell side is under renewed attack from the independent research sector. This will inevitably change some of the targets that IR aims at. A few years ago, at a financial conference in Texas – well, it would be – FD’s were asked what IR teams did all day. They answered “deal with the sell side”. This very depressing answer hides the

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-78127998314001395852011-05-26T08:12:00.000Z2011-05-26T08:12:23.517ZStewardship report; improving but some way to go

"Quality of stewardship should drive mandates, the way quality of stock picking does,” This quote from the UK sustainable investment and finance association came in the run up to the launch of the UK Stewardship Code. There were some doubting Thomases who argued that the Code would become nothing more than a box ticking exercise, and that true engagement would take a while to happen. However a

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-64319739685039453042011-05-12T13:14:00.000Z2011-05-13T20:39:16.469ZCookies rule!

It can be a struggle to win eyeballs for the IR website. And when you have got them there, it would be nice if they stayed around for a bit. The IR website as we know is a key part of the IR team’s communications armoury. So it is slightly troubling that regulators are planning on making it mandatory for users of websites to ‘opt in’ to cookies, rather than opt out. Another potential

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-23259977109221659632011-04-13T08:17:00.005Z2011-04-13T09:27:03.801ZMind the gaps!

OK, change of pace. Regulators have pushed more “stuff” for us to digest on EU level corporate governance and cutting the clutter in annual reports etc. And we will have to get our heads round this avalanche. Oh joy. But beyond the rules, experimentation on how build stronger informational links with audiences is taking place.What I find so interesting about all this regulatory focus is the

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-30245198284838619192011-03-24T13:42:00.004Z2011-03-24T14:13:12.393ZNarrative reporting - any nearer a conclusion?

When we will see any conclusions to the narrative reporting debate published by Government. I sometimes feel like we're Theseus in the labyrinth - but without Ariadne's help to find the way out.1. The BIS / Narrative Reporting Consultation Paper, which noted “The Government will publish its conclusions at the end of the year” closed in October 2010. In it they asked some very detailed questions,

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-61908822839688639482011-03-16T17:26:00.003Z2011-03-16T17:33:31.866ZAnd so to the ICSA Governance conference

A gathering of the great and good in this fast changing aspect of corporate reporting. I much appreciated the invitation to attend.It was an excellent thematic discussion of many elements of the governance reporting debate, around the new guidance (developed by the ICSA for the FRC) on board effectiveness, including board decision making, composition, evaluation, and shareholder relations.As I

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-77189337464503122992011-02-23T12:26:00.002Z2011-02-23T12:33:30.667ZThe engagement process continues to evolve.

As UK Plc and UK investors get to grips with the engagement process, it is useful to look at what’s going on in the US. 2 interesting pieces of work are helpful.First new research on “The State of Engagement between U.S. Corporations and Shareholders”, from ISS and the IRRC. The research asked investors (both owners and managers) and public companies their views on engagement.The resources used,

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-61047499028575198492011-02-17T14:30:00.005Z2011-02-18T08:08:00.303ZSustainable investment growing, but companies are failing to communicate.

With so many off skiing soon, I was thinking of the World Economic Forum in Davos. Jealous? Me?One of the papers presented there was “Accelerating the Transition towards Sustainable Investing”, to which I contributed. I was reminded of it this week, by the launch of an interesting Economist Intelligence Unit study of how limited was corporate reporting on sustainability goals and practices.First

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-51429852583898445832011-02-17T14:30:00.001Z2011-02-17T14:30:42.375ZSustainable investment growing, but companies are failing to communicate.

With so many off skiing soon, I was thinking of the World Economic Forum in Davos. Jealous? Me? One of the papers presented there was “Accelerating the Transition towards Sustainable Investing”, to which I contributed. I was reminded of it this week, by the launch of an interesting Economist intelligence Unit study of how limited was corporate reporting on sustainability goals and practices.

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-41595144297693899602011-02-10T13:11:00.001Z2011-02-10T13:15:15.414ZExchange consolidation on the move again; should IR care?

A “true powerhouse in the global exchange business”, notes the launch of the potential merger between the London Stock Exchange and the TMX Group. Meanwhile, NYSE Euronext and Deutsche Börse have announced their own plans to merge. This signals another wave of exchange consolidation, following that of 5 years ago, when NYSE Euronext was created through the takeover by the New York Stock Exchange

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-25938424973245404632011-01-27T10:00:00.001Z2011-01-27T10:04:09.551ZNew white paper argues that shareholder disclosure rules in EU are not fit for purpose

The old joke goes of a couple asking directions, only to be told ‘I wouldn’t start from here if I were you’. Some IRO’s must sometimes feel the same way. How do you start developing an IR strategy without knowing where you are starting from?And yet that is precisely the situation many IRO’s across Europe feel. Their national – and European level - disclosure obligations do not allow companies in

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-68431476865597922282011-01-07T08:28:00.002Z2011-01-07T08:32:39.774ZNarrative reporting, where next?

To coin a phrase, the search goes on, although this time it’s good narrative reporting which is the quarry, not an apprentice. As preparers wrestle with the task of telling the company’s story in a way that is at once readable, targeted and compliant, new rules on annual reporting are once again on the horizon. In mid December, 2 key standard setters wrote about how best practice should evolve.(

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-61960026232791079512010-12-02T12:58:00.002Z2010-12-02T13:07:27.159ZIRO’s as travel agents a thing of the past?

Its great in theory. As we sit among the early winter in the UK, with airports closed, the virtual investor conference looks to have a lot of merits.The importance to the sell side of corporate access is growing, with huge soft dollar benefits to the investment bank. Investor conferences play an important role in creating those relationships. At the same time, many investor conferences are being

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-41814705194957561722010-11-11T11:53:00.003Z2010-11-11T12:01:11.327ZChallenges in governance reporting

Achieving a fair valuation remains the central objective of IR. And as always, we remember it is not the ‘best’ valuation, for many reasons. A new book “Corporate Valuation for Portfolio Investment” by Robert A. G. Monks and Alexandra Reed LaJoux offers a number of views on valuation. In addition to defining the techniques and processes of valuation (“quant jocks”), Monks argues that few

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com1tag:blogger.com,1999:blog-13817690.post-55288945227042293662010-10-28T13:54:00.001Z2010-10-28T13:57:11.165ZThe role of an exchange is...?

So yet another stock exchange merger/acquisition (Singapore and Australia) waiting in the wings. The consolidations seem to go on and on. However a fundamental question is over the role of an ‘exchange’ in today’s fragmented world, and whether IR should take an interest. The traditional view is that exchanges provide a trusted place where companies can raise capital, and investors trade their

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com1tag:blogger.com,1999:blog-13817690.post-59417607184782884912010-09-30T14:32:00.002Z2010-09-30T14:36:18.859ZImproved US governance and share ID

The New York Stock Exchange Commission on Corporate Governance has delivered its views on the way forward on corporate governance. After a year-long investigation it has published ten key principles for what it calls “solid governance”. It signals a move away from a prescriptive rules-based governance regime that has been the hallmark of previous efforts, to a market-based, principles approach.

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com1tag:blogger.com,1999:blog-13817690.post-82147601411745895162010-09-16T07:53:00.003Z2010-09-16T07:59:20.380ZBoard evaluation: what to share publicly?

Yesterday I was asked to the ABI Investment conference, to join a panel on board evaluations. My bit was about communicating the result.It is an interesting dilemma. At one level the board evaluation is a great opportunity to communicate with long term shareholders (and the conference obviously was largely focussed on them, rather than the range of short term holders). Communicating an

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-57294088105935952022010-09-06T10:05:00.002Z2010-09-06T10:08:48.732ZEngagement on governance issues by debt holders?

Hands up, who has heard of the European Federation for Retirement Provision? No, didn’t think so. And yet they have made a really important point in their contribution to the ongoing EU-wide stewardship debate. Governance – and the ES bit – should not just be about shareholders, it should include bond holders as well.What are – or should be – the appropriate levels of corporate governance

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-29249862342401687412010-08-12T08:58:00.001Z2010-08-12T09:01:14.282ZMalicious lies or fair comment?

Interesting commentary this week around the use of bulletin boards to disseminate ‘news’ – or ‘lies’ according to some sources - to drive down the share price in order to profit from short-selling. A group of oil companies have turned to the courts to get 2 online brokers to remove stories from their bulletin boards, which the companies claim are "untrue and malicious" messages.The City of London

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-90458846135487787522010-07-29T08:42:00.002Z2010-07-29T08:45:40.991ZPost Cadbury review – changes to narrative reporting.

The Takeover Panel’s review of its rules closed earlier this week (you can see the IR Society response here). Now with serendipitous timing, HMG has published its reaction to the BIS Select Committee report on the takeover of Cadbury by Kraft : see here. This is an interesting and important document setting out in high level terms the coalition Government's position on many governance related

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-23126742060030233572010-07-15T07:31:00.002Z2010-07-15T07:37:33.102ZIf regulation is the bane of an IRO’s life, here’s our chance to have a say.

There are currently 4 open consultations which will potentially impact those of us in the IR profession. Time to say what we think! The IR Society Policy Committee is drafting responses right now, and would love to hear from you.First, from Europe, a review of the Market Abuse Directive. Much of it seems to be about the regulators themselves, but there is a question around market manipulation,

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com1tag:blogger.com,1999:blog-13817690.post-32620870590308654172010-07-01T14:21:00.002Z2010-07-01T14:24:32.883ZVirtual investor conferences?

Someone once said to me that being an IRO was a cross between being an accountant and a travel agent. The road show schedule of many an IRO can be punishing. So I was intrigued by 2 events this week.First the research published by Brian Rivel on virtual investor conferences. As his piece in Bulldog notes, the technology is embryo, but nonetheless one out of four sell- and buy-side investment

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-67733783881748920962010-06-10T08:47:00.003Z2010-06-10T08:51:32.045ZAnd so to the GRI conference to give a talk about using digital media to communicate sustainability messages.

The Global Reporting Initiative is a not for profit organisation, supported by ‘stakeholders’ ranging from individuals, to companies and governments. Their aim is improve the communication of ESG information to investors and other users, so that it becomes as commonplace as financial reporting. To help, they have created a framework against which companies are increasingly reporting. The

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-68509221306271651762010-06-04T07:36:00.001Z2010-06-04T07:40:05.059ZWhy would an IRO limit news dissemination?

Its that time again. NIRI National conference will take place next week, and we are full of hope and expectation. I see that the opening session has the optimistic title “Deliver Your Message with Confidence: Owning the Conversation”.There is a subtext to this year’s NIRI that has a personal ring to it (see disclosure below). The issue is whether digital disclosure alone can meet the needs of all

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com3tag:blogger.com,1999:blog-13817690.post-86344304863737973442010-05-27T08:00:00.001Z2010-05-27T08:04:37.219ZAuditors to review governance reports?

We have heard the phrase “the devil is in the detail” a lot during the election. Quite small details can have unintended consequences. So it is with the proposals around a review of the auditing profession, proposed by the European Commission.Commissioner Barnier will publish a Green Paper in the autumn this year on the role of auditors. The objective of this green paper is said to be to initiate

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-44287376373613389902010-05-20T07:18:00.002Z2010-05-20T07:20:39.074ZNew communication targets for IR?

The responses to regulatory consultations aren’t always very revealing, but Tesco’s response to the FRC Stewardship consultation was. They wrote “We have a concern about unengaged fund managers increasingly delegating voting decisions, either internally to governance departments or through an unquestioning following of the recommendations of shareholder representative bodies.” In recent years,

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-25567604602541043532010-04-22T08:56:00.001Z2010-04-22T09:00:26.019ZWho ‘owns’ the corporate story?

Mention the word ‘disclosure’ to a corporate communicator or IR person, and different images pop into people’s minds, all depending on exactly where in the spectrum they fit. For some it is ‘inside information’ being delivered in real time to the market, for others it’s the details in the back end of annual report. For still others, the technology of how it is achieved that is the key.2 things

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-20653051494863087362010-04-08T11:00:00.001Z2010-04-08T11:03:36.273ZTOD up for review – what’s new?

The Transparency Obligations Directive (TOD) will be reviewed this year by the European Commission Internal Markets Directorate (DG Markt). Last year, a report was published, with a review of what stakeholders thought should change. These changes will potentially affect the activities of providers of service to IR professionals in several areas.In the major shareholdings (shareholder ID), there

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-28191602430658597772010-03-26T16:40:00.002Z2010-03-26T16:43:02.370ZIR as gatekeeper - again

Sitting here this afternoon trying to organise my thoughts for an appearance on a BBC radio programme on Sunday on the subject of insider trading. First thought is that it is interesting that this is thought be an interesting subject for a general audience. Next is “why now”?Obviously we have seen a sequence of prosecutions around insider trading and market abuse in recent days and weeks. Which

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-91017086008611669662010-03-11T15:22:00.002Z2010-03-11T15:29:10.926ZPre-emption rights; international standards emerging?

The FSA, as part of its review of the listing regime, has just launched new rules requiring foreign issuers in its Premium segment to follow UK practice in offering pre-emption rights to their shareholders. However the application of the principles remains very different around the world.Last year 1,012 companies across the world raised $196.3bn via rights issues, according to information from

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com1tag:blogger.com,1999:blog-13817690.post-4692800178934967382010-02-24T12:11:00.003Z2010-02-24T12:25:06.140ZWell done investor relations! Profit warnings down.

As the next results season gets under way, an interesting study on the number of profit warnings in 2009 has been published by EY. The result suggests that companies – and their investor relations team – have done well in managing market expectations, but how long before the sell side starts factoring in more aggressive targets?According to the research, listed companies issued 282 warnings in

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-70925333021370668872010-02-18T14:39:00.003Z2010-02-19T11:47:33.821Z“Fair” valuation? Not in these markets!

The classic definitions of investor relations all refer to the creation of a fair valuation as being a key objective of IR. There is a growing concern that the huge growth in non traditional trading venues and trading methods are not allowing proper price formation, and hence an incorrect valuation of the company’s stock. A number of important organisations are pressing for change as a result. (

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-53059358008229203822010-02-10T15:18:00.002Z2010-02-10T15:24:14.944ZThemes in IR – similar challenges in the Gulf, Russia, US, EU...

What a week; commissioned to run Investor Relations courses in Dubai and Moscow in the same week. And yet despite the cultural differences, IR remains constant.First to Dubai to moderate a 3 day course on “Creating a world class investor relations strategy in tough times”. Very fortunate to have an excellent group to work with, from across MENA. Listed companies from Abu Dhabi, Jordan, Bahrain

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-65011868981820611422010-01-28T12:36:00.002Z2010-01-28T12:39:31.709ZDisclosure improvements needed to win new sources of capital: HM Treasury

So we are out – sort of – from recession. Good news, but the hangover will continue. This will include huge changes to the availability, cost and degree of freedom for companies to use capital. So discussion of how to increase access to alternatives is welcome. However the discussion paper on this issue from the Treasury, also suggests tougher disclosure rules for companies. (What, again, I hear

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-25153837046860834332010-01-21T09:26:00.001Z2010-01-21T09:30:03.252ZInvestor communication coming of age.

This week’s publication by the FRC of its Stewardship Code consultation is an important milestone in investor communication. For many years, IR has laboured to achieve the fair valuation, and the right balance of liquidity, creating context for investors to make decisions.However this has been achieved in a vacuum; for the early practitioners there was no manual, no guides, no best practice. The

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-56915116200043767382009-12-10T09:37:00.000Z2009-12-10T09:38:47.642ZCorporate disclosure – implications of the proposed Governance Code.

The last 4 weeks have seen a flurry of papers, guidance and consultations from the Financial Reporting Council. They have, it must be said, approached the task of upgrading our governance ‘rules’ with energy and clarity.However as we discussed at a Radley Yeldar seminar yesterday evening, there are a number of areas that companies will want to think about in their disclosures. Between Walker, the

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-26112426250180696942009-11-27T08:18:00.002Z2009-11-27T08:22:47.644ZCFD disclosures 6 months on.

Hard to believe, but it is 6 months since the new rules on disclosures of CFD positions came into force. On the 1st June, investors were obliged to disclose positions above 3% taken through CFD’s, in addition to those held directly through equities. Has it made a difference? And more importantly, where do these rules fit with the topical ‘stewardship’ debate? First, the volumes of announcements

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-91897078303727589102009-11-12T13:45:00.001Z2009-11-12T13:53:59.912ZCountdown to Copenhagen – ESG investment now truly mainstream

It used to be easy to write about the need for companies to disclose and discuss their ESG policies. There were a small number of funds involved, with limited assets that were managed in accordance with environmental, social and governance criteria. However, as we run up to the meeting in Copenhagen in December, it is clear that the metrics have changed completely.According to the US Social

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-20998130771947063852009-10-29T10:11:00.002Z2009-10-29T10:14:21.557ZConviction notes; practical details a problem?

It was a new one on me I have to admit. In discussion with an interesting group this week, we chatted about ‘conviction notes’ from sell side analysts, and whether / how the prop desks of the investment banks issuing them can support the note without crossing the Chinese wall.Going back one step. By definition, a conviction buy or sell note from an analyst means that that bank’s proprietary

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com2tag:blogger.com,1999:blog-13817690.post-47018004356460804322009-10-15T10:59:00.002Z2009-10-15T11:09:46.474ZIts guidance, Jim, but not as we know it..

Pity the poor regulator. You go to a nice dinner at the IoD and give a speech, and you have someone like me poring all over it for clues as to the concerns of the UK’s Financial Services Authority. The Manager at Company Monitoring at the FSA had that task last week.One of the problems is that with the ‘principles based’ regulatory structure in the UK, there is a constant refrain that no one size

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-63640345384968736312009-09-30T08:26:00.002Z2009-09-30T08:30:17.413ZA change to “standard” listing would present challenges for IR teams

The news this week that UK companies will be allowed to list on the London Stock Exchange using a less rigorous set of rules previously available only to overseas companies has some interesting potential dilemmas for IR teams.For those who missed it, the FSA trailed – buried in the depths of the FSA Handbook rules update – the change which creates a “premium” listing and a “standard” listing.

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-52726943756851741612009-09-24T13:58:00.001Z2009-09-24T14:00:13.495ZStock lending on the rise again.

Stock lending – the process whereby long funds ‘lend’ (ie transfer temporarily) their shares to a third party normally a hedge fund – has started to hit the news again. It had dropped off almost completely since late last year, with the down sizing of the hedge fund industry being part of the problem.According to a report by consultancy Finadium, loan volumes of US equities to January 2009 had

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-57907190005904376702009-09-17T11:26:00.001Z2009-09-17T11:30:28.265ZRumours can seriously damage your reputation.

Type the word “rumour” into FT.com today and you get 10356 hits. The vast majority have a company name in the headline, and represent a headache/ task for the IR team. The potential for share price volatility is great. And how to handle rumours in a disclosure context is a theme that always attracts discussion among delegates on compliance courses I run for the Investor Relations Society.And yet

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-50829801177274335322009-09-03T13:26:00.003Z2009-09-03T13:31:52.687ZESG factors growing as investment criteria

The last 10 years have seen a change in companies’ understanding of how environmental social and governance (ESG) factors affect their business operations. And many companies have placed these factors high on their priority lists.For their part, large investors have increasingly developed public responsible investment strategies and are now more open about how they are implementing them, in many

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-25660840721108652642009-08-20T11:09:00.002Z2009-08-20T11:13:57.422ZCooperation by investors is OK, says the FSA.

TM’s recent post below “Engagement is the new black” missed a word in its title: collective. The announcement yesterday from the Financial Services Authority helpfully clarifies the rules of engagement covering cooperation between activist investors.Investors can work actively together under certain conditions – especially on governance issues - without falling foul of European Union and UK rules

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-14001938691050486262009-08-13T11:06:00.003Z2009-08-13T11:12:52.242ZMore to do on disclosure of climate change policies by companies.

Yet more pressure on investors to persuade companies to toe the line, this time on climate change disclosures. Inevitably, the burden of communication will fall on those responsible for investor communication.Eiris, the provider of research into the social, environmental and ethical performance of companies, has just updated its 2008 work critiquing the identification, mitigation and

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-46063257856637230322009-07-30T14:08:00.002Z2009-07-30T14:13:19.853Z“Engagement” – the new black

It seems to be the governance word of the moment. Engagement is being positioned as at least one of the buttresses in place against a future ‘massive failure of corporate governance’. Indeed some are fearful that engagement will be something on which government will press to legislate.So a couple of writings this week caught the attention, which may interest IR teams.An interesting enquiry among

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-36120080540708123802009-07-16T08:24:00.001Z2009-07-16T08:29:05.085ZEU-wide short selling disclosure rules?

Useful liquidity providers, and an informed source of true market value, or scavenger taking advantage of ill fortune in bad times? The hedge fund industry is fighting back against the latter image, notably in the FT whilst regulators look at how to ensure that the problems of last year are not seen again. CESR’s proposals would require a significant amount of reporting.We have seen so far 3

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com1tag:blogger.com,1999:blog-13817690.post-43689720884774084222009-07-02T08:37:00.003Z2009-07-02T08:42:26.227ZTechnology, trading and investor relations

It is a moment many an IR person dreads. A significant number of shares have changed hands overnight, and the FD wants to know why. Unfortunately, there are an increasing number of occasions when the technology has hidden the reason – or even the transaction – from view.The good news is this may be about to change, following 2 announcements this week.First, dark pools. Or more properly, multi

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com1tag:blogger.com,1999:blog-13817690.post-80159939271171797002009-06-25T05:45:00.002Z2009-06-25T05:48:36.141ZGovernance up the agenda for IR teams

“Governance” and “interesting” used to be contradictory terms for most IR people. However earlier this week, I went to a private lunch hosted by Tomorrows Company and Radley Yeldar (see my bio) which managed to combine both.The point of the event was to allow a high quality group to debate the ‘stewardship’ of companies, and a potential disconnect of interests between ownership and the long term

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-70687884455323861222009-06-10T14:52:00.001Z2009-06-10T14:55:44.540ZCorporate reporting is about ‘cutting out the clutter’.

The preparers of annual and other reports have always had to balance between compliance and communication. Traditional wisdom has it that so much of what the ‘rules’ say should be reported is of no interest to anyone, and is simply there for compliance sake.Well now there is support for the view that reporting should be more about principles of good communication.2 years ago, the Financial

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-7714864789499489842009-05-28T13:35:00.004Z2009-05-28T13:43:31.321ZThe trouble with IMS’s...

One of the proposals when the Transparency Obligations Directive was in discussion in Brussels was whether to oblige companies to produce a full quarterly financial report, a l’Americain. After all went the argument, a significant number of European member states already require it; why not make it a pan EU requirement?There are of course a great number of drawbacks to that as an idea, including

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-31348324041482531192009-05-20T12:37:00.001Z2009-05-20T12:41:21.132ZWalker Review – the missing link

The Walker Review closes for its initial public feedback at the end of next week. This independent review looks at corporate governance in the UK banking industry. Unsurprisingly, there are many who create a connection between the massive failures in the banking sector and an absence of corporate governance.What is however surprising – at least to me – is the lack of focus on disclosure and

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com1tag:blogger.com,1999:blog-13817690.post-69346309030834649102009-05-14T11:48:00.001Z2009-05-14T11:52:09.723ZIt's that word again - transparency

It has been impossible to turn on the TV this week without hearing that ‘transparency’ is needed. The theme that public companies have been used to for many years – the demand for greater insight in to their affairs – has come home to our lawmakers. I had a very interesting discussion early this week with a senior IR person who had been through a tough baptism into IR. She had taken the IR reins

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-43654056608291863032009-05-06T11:57:00.001Z2009-05-06T12:00:30.048ZNew regulation of rating agencies from 2010 will have an impact on investor relations practitioners.

Credit rating agencies wanting to operate in the European Union will have to register and be supervised from next year after European Parliament last week signed off draft rules proposed by the Commission.The new regime will require agencies to apply to the Committee of European Securities Regulators in Paris for registration and be overseen on a day-to-day basis by “colleges” of national

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-84979270691573952842009-04-23T13:10:00.002Z2009-04-23T13:14:55.566ZNow a focus on stock lending.

The genie truly is out of the bottle. As regulators all over the world come to terms with whether to ban short selling, or whether to require disclosure, and if so how, a new enquiry is underway.Stock lending has a distinguished history of helping in various market situations. Lost certificates, dividend arbitrage, hedging and many other legitimate tactics have underpinned the returns to long

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-27169273606657805462009-04-16T13:49:00.001Z2009-04-16T13:51:53.139ZExpert says - back to basics in IR

When a fund manager with decades of experience in stock picking speaks, we tend to listen. Anthony Bolton’s new book (Against the Tide by Anthony Bolton. Published by FTPH, price £14.99. © Anthony Bolton 2009), has some very important messages for IR practitioners.In discussing how he approaches analysis of a potential investment in a company, he starts with the narrative. What business is the

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com1tag:blogger.com,1999:blog-13817690.post-65599979359309495012009-04-09T11:26:00.003Z2009-04-09T11:32:11.435ZAnnual report season: what a variation in approach.

Its that time of year again when the calendar year end annual reports become available. And I have been working on a project for Radley Yeldar to review the FTSE 100 reports. The result will be available in May, when the final deadline of end April has passed, so watch this space.What is already apparent is the vast range of approach taken by different companies.First, what is the purpose of the

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-16248647194966328872009-04-02T09:58:00.002Z2009-04-02T10:01:28.945Z

It has been a known for a while that the sell side research model is changing – if it is not broken altogether. With rising costs and CA teams leaving, independent research is gaining in acceptance. Now this debate has been given even more credence by comments Paul Volcker, ex-Fed chairman and Obama guru in The Times, no less.It may well have a substantial impact on how IR communicates with the

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-92036984763781865562009-03-24T09:16:00.002Z2009-03-24T09:18:35.813ZInvestors the key to changes to the Combined Code.

Cometh the downturn, cometh the regulatory review. Now it’s the turn of the Combined Code to be assessed. In its last review in 2007, only modest changes were proposed and implemented last year. Largely the Code won a resounding thumbs up from both issuers and investors. It has been regarded as state of the art. However the latest review emphasises the role that investors should play.City folks

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-61169781298124003702009-03-19T13:29:00.002Z2009-03-19T13:32:38.018ZHow many reviews do we need?

The inevitable regulatory response to the challenges of the last few months is now in full swing. Yesterday’s Turner report focuses heavily on banks and the wider financial markets structures, but there are some clues for the wider corporate community of where change is coming.One of these is in corporate governance where this week the Financial Reporting Council launched a review of the Combined

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-54648443215827187062009-03-12T08:33:00.002Z2009-03-12T08:37:42.444ZFrom IR to SR?

One of the changes coming from the 2006 Companies Act was those of Directors Duties. These have been upgraded to include a duty not only to investors but also to the wider stakeholder community. Thus Directors are duty bound to consider in their decisions, not only on members of the company – those who own the business – but also those who work in it, supply it, the community around it, those

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com1tag:blogger.com,1999:blog-13817690.post-34141395065379079272009-02-26T10:34:00.002Z2009-02-26T10:41:20.422ZBan short selling, enforce disclosure or both?

Next Tuesday I have the pleasure of moderating a webinar with 3 distinguished speakers. Details are on the IR Society’s website here. The title is "Shorting - To Ban or Not To Ban". It’s an interesting question, to which I suspect many regulators would like to know the answer.In the US the ban was short-lived and in the UK it was lifted last month, as was Australia’s. But Belgium, France, Germany

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com2tag:blogger.com,1999:blog-13817690.post-80026996745664921182009-02-19T09:49:00.002Z2009-02-19T09:52:59.639ZThe IRO – from communicator to accountant and now to compliance?

Has the IR profession taken another turn? I only ask because, in managing another Compliance course for the IR Society yesterday, it is evident that the interest in compliance issues is now high up on the agenda for many companies.25 years ago, when IR was young, a lot of the early practitioners were communications people. Perhaps coming from PR or corporate communications departments.Fast

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-792419093100615652009-02-10T16:44:00.002Z2009-02-10T16:50:53.769ZSocial media – why haven’t IR embraced it?

Can I try something out on you?Why does the social networking revolution seem to have been largely ignored by the IR community? Apart from the occasional excellent blog, and some online YouTube annual reports, companies and their IR teams seem not to want to use the social media. I only ask because IR people – in my experience – are the most excellent networkers. They have to be able to keep up

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com4tag:blogger.com,1999:blog-13817690.post-29555432221455089132009-01-29T10:12:00.003Z2009-01-29T10:20:56.453ZHas the FSA made the disclosure task tougher?

The recent FSA actions on delayed disclosure have cut to the heart of what IR should be able to do for companies. It highlights the raw dilemma facing companies as they suffer from the - highly unpredicatable - business climate. A renewed FSA focus on the disclosure of inside information is the last thing Directors, IR managers, and their advisers need.The FSA disclosure rules are themselves not

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-75701401196495922502009-01-21T09:30:00.002Z2009-01-21T09:36:01.152ZThe Return of the Rights Issue

Capital raising has recently been a highly technical business, mostly involving lines of credit and debt issuance. Between the advisors, Treasury and the finance team, prospectuses were created, and contact made with banks and debt investors. However in these days of expensive credit – where it is available – companies are likely to return in greater numbers to the distinctly untrendy rights

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-50937415692847075452009-01-13T16:49:00.002Z2009-01-13T16:53:19.073ZWhere do the FSA short selling disclosures leave us?

The FSA has tried to add clarity to the position on short selling and – perhaps as always – to steer a middle course between contrasting positions.Most believe that in ‘normal’ times, short selling has a useful role to play when used in investment strategies and risk management activities in providing liquidity, reducing transaction costs and helping ensure pricing efficiency. Others of course

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-79626229235462241272008-12-29T13:56:00.004Z2008-12-29T14:10:33.984ZLooking back- and forward!!

Out of curiosity I just had a quick peek to see what I was writing about this time last year. One thing’s clear – I didn’t predict the scale of the crash – but then few others did either. Mind you my December 07 post did use the word “crash” but that was to highlight the potential of the sovereign wealth funds to save the world...I also wrote about how hedge funds were planning to self regulate

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-9640831165942384212008-11-26T09:20:00.000Z2008-11-26T09:32:25.798ZHelp at hand in what to disclose. FSA offers its thoughts.

Its one of the more difficult sections of the compliance courses I moderate for the IRS and others: identifying and handling the inside information from public companies. The regular information – corporate reporting for want of a better word – or even the disclosures around a transaction, are less troublesome than the occasional disclosure required in unusual circumstances.So any steer from

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-24222646074299251282008-11-12T08:36:00.000Z2008-11-12T08:39:39.726ZTime to dust off the debt IR strategies

Neither a borrower nor a lender be. I don’t suppose that Polonius had debt investor relations in mind in giving this advice to his son. However this has prophetically come true.In the search for reasonably priced capital, many companies are turning to the bond markets. And indeed many have maturing debt that needs to be renewed or replaced over the coming months. However that is turning into a

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-90397275639405645052008-11-05T09:27:00.002Z2008-11-05T09:41:00.931ZNow for the start of the regulators response…

Each month I dig around to find out the latest moves in regulation and best practice in transparency and IR. I put them into a summary. You can the latest – and the archive – here.This month's trawling showed some interesting trends.First the whole fair value debate. The means by which financial institutions assess the value of their assets – especially illiquid ones – has been the subject of a

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-14954620334924954172008-10-22T16:05:00.000Z2008-10-22T16:08:53.484ZAchieving consistency in carbon reporting for companies

Investors are using information on companies' carbon dioxide emissions to manage their portfolios. So says the Carbon Disclosure Project (CDP), backed by hundreds of institutional investors. The CDP survey asks the world's biggest companies to report their greenhouse gas emissions.This year, almost two-thirds of the 385 institutional investors behind the project said they used the survey to

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-78153345349564453222008-10-09T10:59:00.000Z2008-10-09T11:05:36.549ZWhat a week; how can IR react?

As we start the long climb back to a 6000 FTSE (how’s that for a positive start!) a group of IRO’s gathered in London over the last 2 days to consider their strategy. When most booked to come on the training course that I moderated on Tuesday and Wednesday this week, few could have predicted the turn of events. IRO's for big cap companies from major companies are finding this hard enough; this

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-25618897923299941562008-10-02T07:52:00.001Z2008-10-02T07:56:05.469ZPrice discovery has never more important – or more difficult - than now.

It has been a simple thing for regulators – and politicians – to demonise traders and short sellers in le crunch. However one important facet for IR people has been the impact of MTF’s. From Turquoise, BATS Trading and Equiduct as new entrants, to the more established Chi-X and PEX, these platforms mostly owned by banks or consortia of brokers, offer low cost transaction costs compared to the big

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-90602579912977631072008-10-02T07:52:00.000Z2008-10-02T07:55:34.374ZPrice discovery has never more important – or more difficult - than now.

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-17449200176346142032008-09-23T08:40:00.000Z2008-09-23T08:52:03.815ZShort selling bans - the answer or scapegoat?

In normal times, the ability for an investor to sell a stock short is a legitimate tactic, and most often part of a hedging strategy. Short selling creates much needed liquidity. However these are far from normal times, and the ban on short selling is to be welcomed. With the twin evils of alleged market abuse, as rumours sweep the market achieving the very result that short sellers want, and

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-14230308023269570642008-09-18T11:33:00.000Z2008-09-18T11:39:21.722ZSWF’s to the rescue?

With the financial world in various levels of financial meltdown, the search is already on for solutions. Regulators are inevitably reaching for their rulebooks, others are looking to sources of capital. Sovereign funds have already proved their value to the world economic system by helping to recapitalise the US banking system over the past year. And the shape and size of their available assets

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-61949769447781506912008-09-11T11:21:00.000Z2008-09-11T11:28:16.350ZStable performers and a clear story – what investors want?

It is ironic that in good times, it is the stable performers that have problems attracting capital. Unable to generate the kind of returns that get the market going, they risk being dismissed as being dull and boring; a useful part of a portfolio, but not to actively encourage. They have a sound business model, and are likely to have top class governance and transparency, but nothing to set the

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-91366478401912003962008-08-28T10:20:00.000Z2008-08-28T10:46:28.985ZGuidance on guidance

2 countries separated etc. Following my post regarding the SEC guidance on the use of web postings and news releases (which highlighted the distinction with the highly structured European, TOD inspired rules - and by the way prompted some challenging observations!), the US National Investor Relations Institute has sent a timely reminder of the use of quarterly EPS guidance. It reminds us that no

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-8468486370114530682008-08-21T08:28:00.000Z2008-08-21T08:32:53.624ZNews releases and websites in disclosure – the experts offer their view

The joy of having a portfolio existence. Last Friday I was on a call with members of the Disclosure Advisory Board, to get their views on the SEC Guidance on the use of company web sites in disclosure. These are genuine experts in their theme. IR Directors from large and small companies, veteran sell side analysts, legal counsel and investor relations consultancies. Many served on the original

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com1tag:blogger.com,1999:blog-13817690.post-612837539941779842008-08-07T07:47:00.000Z2008-08-07T07:52:06.758ZCorporate website posting for disclosure compliance?

The SEC has issued a guidance document helping companies decide whether their current disclosure distribution strategies are appropriate. My Collins English dictionary defines guidance as “Leadership, instruction or direction”. (It also has the flight path of a guided missile; perhaps that is more appropriate)?So the question is whether the SEC guidance helps or hinders, or provides the guidance

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-81088469027072980312008-07-31T10:28:00.000Z2008-07-31T10:30:47.792ZWhat a week for disclosure and IR – its not the silly season after all

Just when the world takes off on holiday, a whole series of announcements are made on different transparency themes. Where to start? Yesterday the SEC held a webcast to announce its conclusions on the use of corporate websites as a disclosure means for Reg FD purposes. In the latest move it announced that under certain circumstances, companies could rely on their websites and blogs to meet their

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-41043898865761797132008-07-23T09:55:00.000Z2008-07-23T10:01:57.864ZHot on the heels of HBOS rumours, calls for action from US regulators

“To comment on rumours or not; that’s the question.” To paraphrase Hamlet it is indeed a question of growing importance on both sides of the Atlantic. Companies across the world are suffering the “slings and arrows of outrageous fortune” (OK enough Shakespeare) and share prices are suffering as a consequence. The New York Times piece 2 weeks ago on troubles at Lehman Brothers has highlighted how

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-15387993451661040432008-07-10T10:18:00.000Z2008-07-10T10:20:38.616ZIR expertise in Eastern Europe is spreading, but challenges remain.

And so to Zagreb to moderate a “Best Practice in IR” course. A few years (months?) ago that would have been an extraordinary statement. But now markets in Eastern Europe are developing their IR expertise – and very fast. Last week I had the pleasure to work for 2 days with the leading companies in Croatia, and to offer thoughts on developing a world class investor relations programme. As so often

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-64934745338080620902008-06-25T11:57:00.000Z2008-06-25T12:00:16.317ZCalls for wider and more detailed transparency by banks are becoming ever more strident.

For anybody writing on disclosure and the credit crunch, the temptation to redraft the regulations surrounding banks’ disclosure is overwhelming. And with good reason: the absence of transparency that has become evident in recent months has been quite shocking. Manufacturing companies would not have been allowed to escape censure. So what is the problem? Part of it IS about regulation; the irony

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-51056555560093266842008-06-19T08:56:00.000Z2008-06-19T09:02:24.503ZShort selling disclosures - not enough to cure abuse

I certainly didn’t expect such a fast reaction! The Transparency Matters post on May 7th considered the ways in which short selling disclosures were evolving around the world, and highlighted actions in the US, in Australia and Hong Kong. And we highlighted a little reported comments from the FSA Chairman noting these disclosures were a “reasonable proposition”. The new rules published by the FSA

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-27181751464507103162008-06-11T12:30:00.000Z2008-06-11T12:33:24.813ZAs promised - thoughts on achieving a full valuation

A few weeks ago, I trailed the publication of a white paper on how to help analysts attach the full premium to a company’s financial valuation. The paper was published this week in conjunction with the National Investor Relations Institute’s (NIRI) annual conference in San Diego. The white paper calls for companies to provide greater transparency on assets that are not mandated by disclosure

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-47167184312095965262008-05-22T08:43:00.000Z2008-05-22T08:48:17.756ZXBRL mandated in the US – we finally got there

Replacing a voluntary filing programme that found relatively few participants, the Securities and Exchange Commission has proposed a rule that would require all public companies to submit reports in XBRL by 2011.XBRL – promoted by the SEC under the name interactive data - lets standardised accounting data be tagged and retrieved more easily. They can be read by software, screened for specific

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com4tag:blogger.com,1999:blog-13817690.post-79717992955540784572008-05-15T08:47:00.000Z2008-05-15T08:53:10.487ZTime to dust off the IR debt strategy?

Corporate bonds are going through something of a revival at the moment. Prior to the credit crunch, UK corporate bonds had looked unappealing. Interest rates were rising, making cash a more attractive proposition, while spreads were exceptionally tight. Investors were not receiving a premium for the extra risk inherent in even the highest quality corporate bonds.With the collapse of cheap credit,

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-32583166167026187872008-05-07T13:32:00.000Z2008-05-07T13:36:13.491ZAnd now UK regulators consider short selling disclosures

More welcome news for iR professionals who have long complained about the imbalance between disclosures of corporate information useful to investors, and those disclosures required of investors themselves. The FSA appears ready to require disclosure of short positions. In recent weeks we have seen a steady series of announcements about disclosures in the investment tools used especially by

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-25444473987011044472008-04-30T16:38:00.000Z2008-04-30T16:42:54.569ZMarket abuse on the rise?

There’s something ironic about the timing. As the Treasury closes its consultation on aligning the UK’s market abuse regime – which is “super equivalent” (we have more detailed rules) – more closely with the Market Abuse Directive, we receive a report from the FSA commenting that market abuse is on the rise. In yesterday’s Market Watch, the FSA is highlighting again (this is the third year it has

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-5350854969372936212008-04-23T17:05:00.000Z2008-04-23T17:07:08.336ZAlways a pleasure working with experts

To New York this week to moderate a session of the Disclosure Advisory Board. (www.thedisclosureadvisoryboard.com) I thoroughly enjoy these meetings, where we get together to chew the fat over what matters in disclosure, in corporate reporting and other themes of importance to IR professionals. For me, an interesting part is the spread of perspective the Board brings. Sell side, in house IR

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-26978644865388624562008-04-10T09:10:00.000Z2008-04-10T09:15:05.024ZAustralia – first out of the box with CfD/ derivative disclosures?

CfD’s and other equity derivatives are guaranteed to excite interest among IR professionals. And this blog has tried to capture that interest by reporting on various regulators’ progress in requiring transparency of the underlying beneficial owner of the CfD. With the FSA consultation closed – and corporates keenly waiting for the result – it was encouraging to see a new front runner entering the

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-57127506502813058912008-04-03T10:17:00.000Z2008-04-03T10:22:19.581ZNaked shorts – and failed trades.

Whenever markets are in the doldrums, it happens. The rise and rise of those using shorting strategies is making regulators ask themselves whether there is sufficient transparency around the transactions. Especially the so-called ‘naked shorts’. In this, those selling securities short do not secure the stock for delivery. In a typical short-sale transaction, the seller borrows a security and then

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-62399565087777283332008-03-26T08:55:00.000Z2008-03-26T08:59:12.641ZConvergence: ending the differences between US and EU IR?

A consistent theme of this blog has been the wide variation of regulation between countries where a company may be listed or registered. This in turn places burdens on the IR professional, making the compliance task ever more difficult. Last week, we talked about the variations between EU regimes. And this week, the SEC has taken another step towards creating a coherent regime of regulation,

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-81708883320137730382008-03-20T09:36:00.000Z2008-03-20T09:48:08.742ZDisclosure regime change – again.

Here we go again. Just when you thought that disclosure rules – and their implications for listed companies – were settling down, along comes another review. Following its meeting of 5 March, the European Securities Markets Expert Group (ESME) released a report on “competent authority pertaining to issuers publication of regulated information”.The report analyses the different approach to EU

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-62399611842317985522008-03-13T09:21:00.000Z2008-03-13T09:26:07.671ZExplaining rather complying can be good business for both investors and issuers

Studies from time to time show the levels at which FTSE 350 companies “explain” rather than “comply”. Frequently they show upwards of 40% of companies failing to abide by the spirit of the Combined Code. So what to make of 2 recent events. First, the Marks and Spencer decision to to promote its chief executive to executive chairman, extending his tenure by two years. Second an ABI study

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0tag:blogger.com,1999:blog-13817690.post-43023667243479398092008-02-21T10:59:00.000Z2008-02-21T11:03:18.678ZA really enjoyable seminar.

To Brussels to speak at that rare thing – a seminar that delivered real value for all participants. The School of Business Media and Politics (no, I hadn’t either – its new) held a discussion forum entitled “Capital Interests – The challenges of financial communications”. There were several things that for me, made this different. First, it was a pleasant change to be focussing on best practice

Mark Hyneshttp://www.blogger.com/profile/01862102290675552421noreply@blogger.com0