London Stock Exchange promotes best practice in investor relations

  • New guide will help companies communicate effectively with investors
  • Series of events planned

The London Stock Exchange is this week sending copies of a new edition of its guide to investor relations to the companies on 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, examining 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, and 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

Tracey Pierce, Head of Equity Primary Markets, London Stock Exchange Group, 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.”

Tim Ward, CEO of the Quoted Companies Alliance, 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.”

Richard Davies, Chairman of the Investor Relations Society, 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, which is now available on the Exchange’s website 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.

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For further information, please contact:

Alastair Fairbrother Press Office +44 (0)20 7797 1222

newsroom@londonstockexchange.com

Notes to editors

About London Stock Exchange Group:

London Stock Exchange Group is Europe's leading diversified exchange business, incorporating Borsa Italiana and London Stock Exchange. With over 500 member firms and more than 3,000 companies quoted across its markets, the Group operates the largest and most liquid equity marketplace in Europe.

London Stock Exchange itself is the world's most international exchange with over 600 overseas companies from more than 70 countries quoted on its markets. These figures include international companies on AIM, the London Stock Exchange's growth market, which has grown to become the world's most successful market for small and medium sized enterprises with 1,385 companies at the end of July 2009.

The Group offers trading in a wide range of instruments, holding the number one position in the trading of exchange-traded products (ETFs and ETCs) and through its interest in MTS, is Europe’s leading platform for the trading of fixed income products. Through Borsa Italiana’s MOT market it offers a comprehensive range of European corporate and government bond trading services. Its Italian Derivatives Exchange Market (IDEM) sees over €2.5 billion worth of trading every day and through EDX London the Group provides a facility for the trading of Scandinavian and Russian equity derivatives.

London Stock Exchange Group also offers post-trade services such as netting, clearing and settlement on an efficient and competitive basis. These include services from Monte Titoli, the Central Securities Depository for all Italian financial instruments, and Cassa di Compensazione & Garanzia (CC&G), which in July 2009 was granted Recognised Overseas Clearing House (ROCH) status by the FSA to operate in the UK.

Now with the recent acquisition of MillenniumIT, the Group also encompasses a leading developer of low cost high performance trading platforms and financial markets software serving both the industry and the Group's own businesses.