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And the Beat Goes On and On and On

As we enter the second week of March, a Senate Banking Committee financial reform bill (that will include corporate governance reforms) continues to be negotiated by Democrats and Republicans without agreement. Dodd first released a draft of a very aggressive bill that was doomed for failure in November and then immediately started bi-partisan discussions to reach a compromise position. For the last several weeks, I have been suggesting that a bill should be released soon. The delay and area of disagreement is on the CFPA or a Consumer Financial Protection Agency. So we continue to wait and watch as I expect a bipartisan bill to be more favorable for corporate governance reform. So, I am happy to wait.

This past week's big news was that sales of RiskMetrics to MCSI. MCSI is known as a financial index and investment services firm. In a recent call to discuss the purchase, MCSI indicated they expected cost savings from consolidation of operations and while the ISS proxy advisory portion is a “non-core" business, it is expected to generate cash to help MCSI pay down debt. I can't help but wonder whether this means fees will increase or ISS will be sold off. To that end, NIRI and the Society of Corporate Secretaries and Governance Professionals have completed a white paper outlining some of the conflicts and problems with proxy advisory firms. I shared the major points with you a couple weeks ago and I will share this discussion paper with you next week, as this is an area NIRI is advocating for change.

Since things at the SEC were slow this past week, I thought I would share with you some of the enforcement cases the SEC brought this past week. The one that stood out was against a psychic for fraud as he touted his ability to predict the stock market. I find it sad that he was able to get $6 million dollars from than 100 investors. As many of my twitter friends said "he should have seen it coming!" Other enforcement actions this week included:

I suspect we are going see many more enforcement actions from the SEC in the coming weeks and months as they continue to increase their emphasis in this area.

Also this week, I want to point out a research study called "Equity Trading in the 21st Century" (passed along to me by former NIRI Chair Marge Wyrwas who works at Knight Capital and sponsor of the research). As IR professionals, we struggle to understand all aspects of U.S. capital markets. This is a well done piece to help you with your understanding and well worth reading.

Tomorrow, your NIRI Board has a meeting in conjunction with a visit to the South Florida chapter of NIRI. This afternoon you can join in on a member webinar on Investor Targeting Strategies. This webinar is a two-part series and will conclude next week with a webinar on International Investor Targeting Strategies.

This past week I visited the Triangle, Charlotte and Chicago chapters and want to share with you answers to a couple of member questions. The first member was inquiring about whether eGroups are replacing LinkedIn as the preferred forum for online member discussion. The answer is yes, while LinkedIn is very popular, NIRI's eGroups have a lot more flexibility and the conversations are owned and managed by NIRI and not a for-profit business. So we are hoping that over time, members will migrate discussions over to NIRI's eGroup discussion forum.

The other question was about this year's annual conference. The member knows she needs to attend to stay abreast of changes in regulations, capital markets and changing communications mediums, but is concerned about asking her boss this early. I told her that a listing of program sessions is available at http://www.niri.org/conference, and to keep an eye out for NIRI brochures and communications that detail program highlights. Also posted on the NIRI Conference site is a template of a memo or e-mail that you can use to help justify why you should attend and register now to get the early-bird rate. I certainly understand the desire to attend this year's conference and the challenges in asking in this business climate, so if we can do anything to help you make your case for attending, please let me know. It is going to be a terrific conference and I am looking forward to welcoming you to San Diego on June 6 – 9.

Until next week,

Jeff Morgan, CAE
President & CEO
jmorgan@niri.org
www.twitter.com/jeffreydmorgan

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