Your investor relations team must know the rules – regulations that govern public companies. If you’re not sure, the consequences are too serious for you to have any doubts.
Knowing the Rules – Regulations for Investor Relations
No matter where your company is operating or what exchange it is on in North America, your investor relations provider must adhere to a strict set of rules – regulations. These rules have been established by your exchange, securities commission, and legislation at both the regional and federal levels.
For securities trading in the United States (“US”), the rules and regulations governing your investor relations provider include (but are not limited to):
These regulations are set out by the Securities and Exchange Commission (SEC) and the Sarbanes-Oxley Act of 2002. In addition, the rules set by the Financial Industry Regulatory Authority (FINRA) impact US investor relation programs. (FINRA consolidated the NASD and the regulation, enforcement and arbitration functions of the NYSE in July 2007)
For securities trading in Canada, the rules and regulations governing your investor relations provider include (but are not limited to):
- National Instrument (“NI”) 51-102;
- NI 43-101 for mineral exploration and production;
- National Policy 51-201; and
- Other policies as set forth by the various provincial securities commissions.
In addition, the rules of the Investment Industry Regulatory Organization of Canada (IIROC) impact Canadian investor relation programs. (IIROC was established through the merger of the Investment Dealers Association of Canada (IDA) and Market Regulation Services Inc. (RS) on June 1, 2008)
It is imperative that your IR provider know and respect the rules and regulations that govern your company to protect its credibility and legal well-being.
If you have further questions or would like to speak with us, don’t hesitate to contact us.
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