Breaking Down Informational Barriers: NIRI’s Updated Disclosure Standards in Focus
Last month NIRI unveiled the seventh edition of its landmark Standards of Practice - Disclosure publication, the ultimate resource for the investor relations (IR) profession. To meet the demands of the ever-changing regulatory landscape in the U.S., this new edition not only refreshes existing content but also integrates valuable insights from several related NIRI best practice guides on earnings release practices, notice and access.
In general, disclosure is a big challenge for publicly listed companies not only in the U.S. but in Canada too. Businesses are legally required to provide a massive amount of information and data to shareholders, and the dissemination of that information can be difficult. In Canada for instance, disclosing information that is material to a company’s operations over improper channels violates current securities rules. Although Canada has a fragmented regulatory system of 13 provincial and territorial securities regulators, access to material information must be provided fairly to all shareholders and in timely manner. This principle applies not only to Canada but also in the U.S. and in Europe.
The Seventh Edition provides updated disclosure concepts, securities regulations, and court decisions that shape what information is disclosed, when, how, and to whom.
Highlights of the new edition include:
· Structured Disclosure –reflecting new SEC rules.
· The previously separate guide on Earnings Release Practices now has its own chapter.
· A new chapter on ESG Disclosure, and the NIRI Policy Statement on ESG.
· Significantly expanded and reorganized chapter on Court Decisions and SEC Actions that have shaped disclosure.
Since the first edition hit the shelves in the 1990s, NIRI has updated the publication periodically as regulations have evolved and new regulations have been introduced, with the last update in 2016.
“It’s an indispensable resource, especially for those preparing to sit for NIRI’s Investor Relations Charter (IRC®) exam,” says Matt Brusch, President and CEO of NIRI: The Association for Investor Relations. “The IRC is the only U.S. IR credential.”
He continues, “No one comes to IR with complete knowledge of the variety of domains required for success since there are no degree programs for IR in the U.S. So, this publication is considered the “textbook” for the many IR professionals [who] begin their IR careers. We are grateful for the contributions of subject matter experts and volunteers who served in the Standards of Practice Working Group or authored chapters.”