Why Are SEC Compliant IR Websites Important for Public Companies? SEC Compliance Requirements
All public companies need to have IR websites that they can use to display their stock-related information and research reports. All the SEC filings are also published on these websites. Apart from this, the SEC has certain criteria that every Investor Relations website must follow. If this is not done, the chances of your website and your company getting scrutinized are increased.
Here are some basic things that you need to take care of, in order to successfully run an SEC-compliant investor relations website.
Raw XBRL Files
You must publish your company’s files in the XBRL language and that too should be used directly on your website. This information must stay there for at least a year.
Apart from the XBRL files, the SEC requires you to publish some other specific reports as well like section 16, and forms 3,4, and 5. They also need to stay there for a year.
SEC demands that all public companies must post their corporate leadership, this includes the board of directors, Committee Charters, and Committee members.
Proxy Content, Cookies, and Anonymity
You must post your proxy material on a website that does not track cookies and doesn’t infringe upon the anonymity of the readers. Once this is done you can publish that content on your own website and even track cookies.
General Content Guidelines
These are some general rules that you must follow like the website should be accessible all the time and the dates and the content published is accurate. Apart from this, you must not remove any SEC filing as that may be considered as manipulation of information.
Now that you know how to manage your IR website while following all the compliance requirements of the SEC, let’s move onto what your IR website can do for your public company.
IR websites can be used to target digital networks and even potential clients. A practical and well-designed Investor relations website can help companies generate or pique general shareholder interest, create an active shareholder group or even establish share liquidity.
All this is done through the effective planning, delivery, and execution of communication plans based on firm design and solid website practices with content that sets you apart from your competition. Where and when are IR websites coming in handy, you ask? Let us tell you.
IR Websites Help You Make Connections
The primary purpose of your investor relations website is to conduct targeted communications with shareholders. This communication can be about the corporate structure changes, new products, Share values, and even general market research. Creating a unique platform just for communication helps you build a better relationship with your investors and clients. It also helps your investors realize how serious you are in the game and adds a reinforcing appreciation that enables you to create a stronger bond with them.
Market Media Connect helps you create the most effective IR websites, with complete online marketing solutions for public limited companies. In order to successfully reach the true potential of your investor relations, MMC is your go-to organization.
Branding and Digital Presence
IR websites are the most important channel of information and communication for investors. The main thing to be kept in mind here is that once your company starts trading its stocks, all kinds of investors, brokers, and analysts will be looking up your investor relations website. IR websites are a kind of proof, and they verify your company’s financial brand. Shareholders and investors expect public companies to have their own Investor Relations websites.
Analysts report that around 52% of investors back away from investing in a company that does not have an investor relations website. This action is mostly backed-by the investors saying that “Companies that don’t have an IR room are turning away from one-half of their true potential.”
A solid online presence can even help your company in generating leads and making conversions. The market is now very dynamic, mainly due to the shift from traditional marketing to digital marketing. The Internet has become a big global market with interconnected networks for marketing, communication, and even trading. Apart from this, the self-direct buyers and investors now rely mostly on online research.
This transition in the process of research, marketing, and buying demands that every company has a strong digital presence. Which in turn helps capture the buyer’s attention before the sale occurs. This also helps keep an excellent record of all the shareholder and investor activity, which can then be turned into a complete database for further projects and strategies.
Digital News Distribution and Marketing
There are techniques like PPC and Social Media Campaigns that are now attracting the right buyers and customers. Not only this, with some sound planning and strategy, you can make sure that your message gets across to the right people. Email marketing, social media channels, or even telephonic outreach play a considerable part in this communication funnel.
Digital news distribution platforms are now taking the message to a global market catered explicitly to different industries. Almost all public limited companies are now using these distribution channels to target their audience and get their information out to the customers.
Research Reports and Documentation
Your IR website also acts like the documentation and research material that is readily available for the investors and shareholders, e.g., Quarterly Earnings Reports. In-depth reporting and constant feedback make your company more accessible to your audience, which in turn means people will start taking an interest in your company.