The Canadian Investor Relations Institute (CIRI) has issued its latest “Standards and Guidance for Disclosure and Model Disclosure Policy,” last updated in 2006. It encourages companies to go beyond the minimum legal requirements for disclosure of material information.
According to the press release announcing the updated guidance, best practice recommendations from the TSX Exchanges and CNSX call for wide dissemination of a news release when disclosing material information. A release should also be pushed out when news is distributed via digital media, conference calls, and other methods.
CIRI is a nonprofit organization with ties to Business Wire, the news wire service. In a full disclosure included on the press release announcing the new guidance, it states the following:
Business Wire is the sponsor of CIRI’s Standards and Guidance for Disclosure. However, Business Wire’s involvement in the project came after CIRI completed its revisions. Business Wire had no role whatsoever in influencing CIRI’s research and conclusions.
Business Wire has spoken out often in favor of press release distribution in tandem with Web postings and other comms methods for material info disclosure.