What are the rules that govern financial public relations?
Like all really worthwhile activities, financial public relations should be a careful combination of the stylishly strategic with the timely tactical and as such should fit in comfortably with every other area of public relations activity. The real difference between financial public relations and its sibling sectors is the rules and regulations that govern it. While there are many areas of activity in which there are rules, it is difficult to think of any where there are so many rules and regulations about what can be said, when, to whom and for what purpose, which are drawn up in such infinite detail, while at the same time leaving so much room for interpretation, argument and misunderstanding.
Taking the London Stock Exchange as an example: the anxious frowns of company directors and their financial advisers do not only come from worrying about how to explain their pay increases to shareholders. In recent years, they have also become understandably anxious about what they can say about themselves, and when and to whom they can or should communicate. Changes in the market and reaction to abuses of information have led to the introduction of new rules, regulations and laws which are in danger of clogging the flow of useful information altogether at a time when an improvement in the flow of information for companies is seen as particularly desirable by those that own them.
The pressure on directors and communications people is to give more information at a time when the rules and regulations make it more and more difficult. The communication of financial information can be a high risk task, and should not be attempted without careful thought and sound professional advice.
It is quite daunting even to list all the key guides and Acts of Parliament:
the Companies Act 1985;
the Financial Services Act 1986;
the Criminal Justice Act 1993;
the Stock Exchange’s Listing Rules (Yellow Book);
the Take-over Code (Blue Book);
the Stock Exchange’s ‘Guidance on the dissemination of price sensitive information’ (Price Sensitivity Guide).
For most UK communications advisers the Sock Exchange publications are most relevant. They address directly the problems of issuing sensitive information. They may be self-imposed rules but the cost of transgressing them both in terms of money and damaged reputation can be considerable.
The Price Sensitivity Guide is an attempt to deal with the confusion of what companies should consider as price sensitive. It is of necessity still open to interpretation but the spirit is very clear, which is to stop a number of activities that were previously common practice, including selective briefing, particularly of analysts on price sensitive issues, briefing individual shareholders ahead of an announcement and using carefully placed leaks in newspapers to excite or tone down market expectations ahead of results or announcements.
The simple rule is that any sensitive information should be disseminated through the Stock Exchange to all shareholders at the same time. The problem remains that one person’s price sensitive statement is another’s confirmation of a well-known piece of public information.
Financial public relations is a specialist business and requires not only a thorough knowledge of all these rules and regulations, but also some experience in how they have been interpreted in the past. The coordination of the issue of information is also crucial if only to stay within the rules. Experienced financial advisers and public relations people are therefore vital.
- Ильина о.К., Тычинский а.А.
- Предисловие
- Методическая записка
- Content
- Marketing communication
- The role of public relations in the marketing mix
- Public relations planning in the marketing mix
- Marketing integration
- Campaign development
- Diagnosing the solution
- Product launches
- Improving brand equity
- Public Relations in the future marketing mix
- Step-by step planning process
- Exercises
- I. Discuss the following questions.
- II. Say what the following refer to in the text of the article under the headlines:
- Marketing integration
- III. Match the following definitions with the word-combinations below.
- IV. Complete the words.
- Internal communication
- Why communicate?
- What do people want to know?
- Some communication techniques
- Communication and leadership: the bp Oil experience
- Background
- Preparing the ground
- Creating the right attitude
- 1 The right attitude (see Figure 2.2)
- Attitude Technique Talent
- 2 The communication road map
- 3 The good communicator
- 4 The head office communication forum
- The virtuous circle
- Link with human resources
- Where is bp Oil now?
- Exercises
- II. Say what the following refer to in the text of the article under the headlines:
- IX. Translate the following text from Russian into English.
- (Виктория Чупровская. Внутренний pr способен решить коммуникативные проблемы в компании. Www.Prlink.Ru)
- Сommunity relations
- Background
- What is community relations?
- Why bother?
- Methods used in a community relations programme
- One piece in the jigsaw
- Research
- Strategic objectives
- Project selection criteria
- A sponsorship example
- Donations policy
- How can the project be developed?
- Measurement and evaluation criteria
- Business benefits of the programme
- Employee participation in the community involvement programme
- Why bother involving your employees?
- How do you know that the programme is a success?
- Internationalising the programme
- Future developments
- Conclusion
- Exercises
- I. Discuss the following questions.
- II. Say what the following refer to in the text of the article under the headlines:
- IV. Complete the words.
- V. Translate the following word-combinations from Russian into English consulting the article.
- Financial public relations
- How do you define financial public relations?
- The basic task
- Corporate public relations
- What contribution does financial public relations make to the success of a company?
- What are the rules that govern financial public relations?
- Why has this business become such a major industry?
- Investor relations – Is it public?
- Coordination and consistency
- A time to speak and time to remain silent
- How does it fit in with other areas of public relations?
- In-house or consultancy?
- Vickers plc – a very brief case study
- Conclusion
- A checklist
- Exercises
- Corporate public relations
- Vickers plc – a very brief case study
- VIII. Translate the following text from English into Russian.
- IX. Translate the following text from Russian into English.
- X. Summarize the article “Financial Public Relations”.
- XI. Solve the following pr problem.
- Local government and government relations
- Why central and local government matter
- Effective public affairs
- Defining public affairs
- Central and local government
- Government
- Members
- Local government
- Gaining access
- Case studies
- Bail Bandits – a campaign to change the law
- The execution
- Trident – battle of the dockyards
- Key points
- Exercises
- Business to business public relations by Nigel Lawrence
- The customer rules
- How do you know it works?
- The trade press
- Getting it right
- Being prepared
- Getting the good news across
- Joining forces
- Conclusion
- Exercises
- II. Say what the following refer to in the text of the article under the headlines:
- Public relations for non-commercial organizations
- The mission
- Not-for-profit pr
- The public presence
- Partnership – the sum is greater …
- Provision of services
- Involvement of interested parties
- Case studies – the human face
- Aims, objectives and realization
- Checklist for a successful campaign
- Exercises
- II. Say what the following refer to in the text of the article under the headlines:
- Involvement of interested parties
- III. Match the following definitions with the word-combinations below.
- VI. Translate the following sentences from Russian into English using active vocabulary.
- VII. Translate the following text from English into Russian.
- Sponsorship
- Definition of sponsorship
- What makes a successful sponsorship?
- Do’s and don’ts of sponsorship
- The sponsorship package
- Sponsorship package checklist
- The public relations agency agenda
- Exercises
- II. Say what the following refer to in the text of the article under the headlines:
- The sponsorship package
- III. Match the following definitions with the word-combinations below.
- IV. Complete the words.
- V. Translate the following word-combinations from Russian into English consulting the article.
- Environmental public relations
- Be aware of public concerns
- Chemicals industry – in the limelight
- The Rhône-Poulenc initiative
- Changing public perceptions
- Putting the case for recycling
- Looking to the future
- Exercises
- II. Say what the following refer to in the text of the article under the headlines:
- III. Match the following definitions with the word-combinations below.
- IV. Complete the words.
- (Dorothy Seed. Global warming changes attitudes to nuclear power / Behind The SpinPublic Relations. Http://publicsphere.Typepad.Com/behindthespin/2006/11)
- Glossary a