MiFID II and the ascent of IR

The MiFID II deadline is fast approaching. With only just over 100 days until implementation, Laura Hayter outlines why we need to be IR ready!

The Society recently held a roundtable discussing the impact of MiFID II final rules and more specifically managing consensus in the context of MiFID II. While it remains unclear how banks and indeed investors will price research, meetings and conferences, the majority of investment houses have now explicitly said they will pay for research out of their own P&L. What is clear is that companies will need to take more responsibility for, and arrange shareholder meetings directly.

On the topic of consensus management more specifically, it isn’t clear to IROs how consensus will be compiled on Bloomberg or through other sources as a result of MiFID II. With a shrinking sell-side research market, the shape of forecasts is bound to change including the rise of crowd-sourced forecasts and through the possible use of algorithms. With the onus on corporates to maintain transparency through company compiled consensus, we are definitely seeing the ascent of Investor Relations!

What is clear, is there is currently no consensus on consensus, and the IR Society is working with its members to identify how best to address the gaps. The MIFID II deadline of 3 January 2018 is fast approaching. We only have 100 days until implementation, let’s be IR ready!

You can also view Helen Parris', Director of IR at G4S key takeways from this week's MiFID II roundtable here

Published 21 September, 2017

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