FINANCIAL COMMUNICATION: FRAMEWORK AND PRACTICES - 2019 EDITION

144 It is therefore vital that executives are well prepared, have liaised with Investor Relations to identify the key messages that they wish to convey to the financial community and to journalists, and that they prepare answers to questions (Q&A) relating to all subject matters, including the most sensitive issues, while scrupulously respecting the principle of equal treatment of information, in accordance with regulations. Explanations and answers must take into account all information that has been previously provided and anticipate, insofar as is possible, their future consequences. To ensure consistency and credibility, it is important that the Investor Relations officer be present at meetings between executives and members of the financial community since they have an understanding of all the parties as well as how the financial markets work. This ensures that the relationship is managed more effectively over the long term. Corporate access For the majority of investors, meeting the company’s executives is an essential step in the decision-making process. Brokers offer to organise corporate access with executives in order to better position themselves in the eyes of investors. Such meetings may give rise to an increase in stock market orders. However, the entry into force in early 2018 of the MiFID II Directive, which establishes a clear separation between finding investors and executing transactions, could significantly change brokers’ and investors’ practices. Costs related to finding investors, and the related activities such as organising conferences, roadshows, etc., must now be itemised and separate from transactions. As a result of this provision, brokers, based on their trading policy, may become more selective in their search for investors, pass on the cost to clients and even reduce their monitoring of certain small-cap investments. This could result in investors using brokers’ services less frequently, choosing to set up their own corporate access teams to contact issuers directly. The extent of the directive’s consequences cannot be measured until after its first year of implementation. RELATIONSWITH FINANCIAL ANALYSTS AND INVESTORS Although analysts and investors (with whom Investor Relations officers mainly communicate) have different areas of interest, a very similar approach and behaviour should be adopted in relation to them. In general, during meetings, Investor Relations officers will comment on previously published information and will be careful not to disclose any new developments that are not yet public, and in particular those that could have an impact on the share price.