Society responds to the Review of Investment Research
The IR Society response to this call for evidence indicates that it will be conducting some further member research on current levels of coverage, and also refers to our 2021 MIFID II survey that illustrated the impact on sell-side coverage and quality, the reduced role of corporate broking services and the significant increase in direct interaction between IR departments and investors which has ensued.
The Investor Relations Society
5th Floor, 30 Coleman Street
London, EC2R 5AL
Rachel Kent
Chair of the UK Investment Research Review
By email: IRR@hmtreasury.gov.uk
24th April 2023
Dear Rachel,
Re: Investment research review – Call for evidence
Thank you for providing the opportunity to submit evidence and views in the call for evidence issued by the UK Investment Research Review, which will focus on the availability and market for investment research and its contribution to the competitiveness of the UK’s capital markets. I am writing on behalf of the UK’s Investor Relations Society (‘the IR Society’).
The IR Society represents members working for publicly listed companies and consultancies to assist them in the development of effective two-way communication with the markets and to create a level playing field for all investors. It has over 850 members, drawn mainly from the UK, including the majority of the UK FTSE 100 and many of the FTSE 250 constituents, but also including some from companies listed overseas.
The IR Society’s mission is to promote best practice in investor relations; to support the professional development of its members; to represent their views to regulatory bodies, the investment community and Government; and to act as a forum for issuers and the investment community.
In conjunction with the London School of Economics (LSE) and Glasgow University, the IR Society carried out some member research in 2021 on the impact of the MiFID II “unbundling” on Investor Relations (published Spring 2022, available here, and also attached as a PDF), which we hope you will find of interest. This illustrates the impact on sell-side coverage and quality, the reduced role of corporate broking services and the significant increase in direct interaction between IR departments and investors which has ensued.
We intend to conduct some further member research. We would hope to have this available in short order to inform our views, which we would propose to share in any future consultation.
We would also be very keen for appropriate representatives from the IR Society to attend any proposed discussions with interested parties to further explore the issues that are being considered by your review so I would be grateful if you could let me know if that would be possible.
Your sincerely,
Liz Cole
Head of Policy and Communications for the IR Society
Secretariat to the Investor Relations Society’s Policy Committee
(Email: enquires@irsociety.org.uk, Tel: + 44 (0) 20 7379 1763)
Published 24 April, 2023