Australia is known for many things: hats with corks, kangaroos, Crocodile Dundee, and, of course, its continuous disclosure policy. As one of the first countries to implement such a regime, it is seen as a role model in IR.
But the Australian investment world is not without its concerns. A recent survey by the Australian Investor Relations Association (Aira) finds that Australian IROs have a list of worries including new corporate governance regulations, the Australian Stock Exchange’s revised listing rule 3.1B, and the proposed Clerp 9 legislation.
Luckily for Australian IROs, Aira and IR magazine are holding our third annual conference on September 30 at the Westin Sydney, which will be followed by the IR Magazine Australia Awards. The aim: to lend clarification to these very issues.
The conference, which is the largest annual gathering of IR professionals in Australia, will encompass expert presentations and panel discussions, hypothetical scenarios about market guidance, a panel of international fund managers, and a disclosure case study.
‘Australia is a leader in disclosure, and the current practice demonstrates a very widespread acceptance of best practice disclosure guidelines,’ affirms Aira’s chairman, Carolyn Kerr. ‘The issue we are finding is that with the very strict continuous disclosure regime, people starting out in IR want somewhere they can find out about the current issues and approaches.’
John Curry, chairman of the Australian Shareholders Association, will be part of a panel discussion at the conference and agrees that IROs in Australia are in need of a forum for debate and education. ‘The art of investor relations in Australia is important, but still in its infancy,’ he asserts.
Curry thinks IROs need clarification of certain issues: ‘Australia’s disclosure policy is reasonable, but companies still run to the lawyers for advice on disclosure instead of asking themselves what is appropriate in order to keep the market fully informed.’
Instead, Curry suggests, ‘Companies should consider what is the ethical approach. And how will this build investor confidence in the management board and the corporation generally?’ He adds that he expects ‘vigorous debate’ about these issues.
Vigorous debate will also be expected at IR magazine’s fifth annual Eurozone Conference & Awards at Paris’s Palais Brongniart on October 16. The conference will bring together IR professionals from all over Europe with leading investors from hedge funds, pension funds and insurance funds.
Presentations, debates, and discussions will address questions such as these: How will stock exchanges help restore confidence in Europe’s capital markets? How are board structures across the Eurozone changing to meet the new challenges? And will quarterly reporting prove to be the answer for effective investor guidance?
One conference speaker with a strong view on this last topic is Patrick Verelst, VP of IR at Belgian brewer Interbrew, who will be involved in a panel discussion on the subject.
‘I would like to put a few question marks around quarterly reporting,’ he says. ‘Our industry is seasonally biased, so I absolutely do not see why I should have to undertake quarterly reporting when the first quarter only makes up 10 percent of our whole year. In an industry where you have to build brand equity, you have to have a long-term view, and a quarter really does not make that much difference.’
Verelst continues that he is looking forward to debating the issue with his fellow panel members who include representatives from France Telecom, Accor and Banco BPI. ‘They won’t share my opinion, so we should have an interesting discussion,’ he remarks.
Discussion, debate and education are of the utmost importance in this critical year for investor relations professionals worldwide. While the issues affecting IROs in Australia and the Eurozone may be very different, the core requirements remain the same: exploring the key drivers for successful IR, navigating the changing regulatory environments, and excelling with best practice. Whether in Sydney or Paris, expect to be a player in a thorough IR debate.
Click here for upcoming IR Magazine awards
Click here for upcoming IR Magazine coferences
