ARIR WHITEBOOK ON COMMUNICATION OF LISTED COMPANIES

SCHEDULE:
1

April 2019

Release for public consultation

2

May - October 2019

Compliance

3

November - December 2019

Evaluation

4

Latest 20 January 2020

Release and implement the results

* on ARIR & BVB websites pages

1

April 2019

Release for public consultation

2

May - October 2019

Compliance

3

November - December 2019

Evaluation

4

Latest 20 January 2020

Release and implement the results

* on ARIR & BVB websites pages

KEY CHARACTERISTICS OF THE NEW METHODOLOGY:

The new assessment criteria aim at promoting implementation of best practices in investor relations and compliance with the Bucharest Stock Exchange Corporate Governance Code, in line with the expectations of institutional and individual investors.

The scope of the new assessment methodology, as a project managed by the Romanian Investor Relations Association, is focusing on promoting pro-active investor relations practices, leaving aside the content accuracy of regulatory-enforced obligations. The assessment will include only public available information.

BACKGROUND:

Bucharest Stock Exchange has carried out 3 assessments of the websites and email communications of 85 issuers from the Main Market, gathered in The Whitebook on Communication of Listed Companies, latest being released in October 2017. During Q1 2019 ARIR coordinated a dedicated working group to review the methodology of the Whitebook on communication of listed companies. The working group included ARIR team, Bucharest Stock Exchange representatives, equity analysts, IR professionals, consultants and members of the academic field

PRINCIPLES:
  1. The proposed methodology is proposed for public consultation during April 2019.
  2. Listed companies will have at least 6 months during 2019 to comply with the new methodology.
  3. The first assessment will be done by ARIR in December 2019.
  4. The final score, ranging from 0 to 10 will be displayed on each company profile, on  bvb.ro and www.ir-romania.ro websites by latest end of January 2020.
  5. The methodology will be revised annually in March and the assessment will be done annually in December, or anytime at the request of a listed company.
  6. In case the maximum rating (10) is granted to more than 1/3 of the listed companies on the Regulated Market, the criteria imposed will be revised even if is not in the proposed schedule, for an upgrade of the requirements to a new level.
  7. The proposed methodology is looking for an assessment based on objective and clear criteria that includes provisions related to: Investor relations office, Corporate Governance, disclosure, engaging IR approach, interactive IR tools, analyst coverage, Non-financial reporting
  8. ARIR together with the Bucharest Stock Exchange and working group members will provide support throughout the process for maximum compliance.

 

WHO WE ARE?

Romanian Investor Relations Association (ARIR) is a non-governmental and non-profit organization that was set-up in November 2018 with the purpose to provide current and potential issuers a platform for the development of Investor Relations (IR) professionals and contribute to the implementation of best practices in investor communication and corporate governance. The founding members of the association are Bucharest Stock Exchange, Romanian listed companies, those with potential to become listed companies, fund managers and Investor Relations (IR) professionals.

WHAT WE DO?

ARIR strategy is based on 5 key directions having the following objectives:

  • Evaluation – Assessment of investors’ perception related to listed companies;
  • Presentation – Improvement of companies’ presentation;
  • Regulations – Monitoring the legislative framework and supporting members’ opinions;
  • Communication – Strengthening links with investor and analyst communities;
  • Recognition – Promoting companies that implement best practices.