Regulatory filings and investor discloss

Investor relations teams are perpetual tightroe walkers, balancing the market’s thirst for insight with the rigid guardrails of regulation. The challenge isn’t just about what information to share, but how to share it—without falling into the traps of selective disclosure or leaking material non-public information (MNPI). The SEC’s Regulation Fair Disclosure (Reg FD) isn’t just a rulebook; it’s a reminder that transparency and fairness must coexist, even when the market clamors for more.

Transparency Isn’t Just a Box to Tick

True credibility with investors isn’t built by doing the bare minimum. It’s earned by consistently publishing financial and operational metrics in both regulatory filings and press releases—making sure everyone gets the same information at the same time. When you share a data point in one channel but not another, you’re not just risking confusion; you’re inviting skepticism. In a world where trust is fragile, consistency is your most valuable currency.

The Hidden Dissonance of Private Meetings

Investors always want more—private meetings, exclusive insights, a whisper of what’s coming next. But IR professionals know: every conversation is a potential minefield. Leak MNPI, and you’re not just breaking the rules—you’re undermining the very trust you’re trying to build. Insider trading policies, trading blackout periods, and pre-clearance processes aren’t just formalities; they’re the guardrails that keep everyone honest.

Setting Expectations: The Art of Realism

It’s tempting to guide low and beat expectations, or to paint an overly rosy picture. But dissonance creeps in when guidance doesn’t match reality, or when the tone shifts dramatically between venues—optimistic in the annual report, cautious in the earnings call. This inconsistency doesn’t just create volatility; it erodes investor confidence and can make even small mistakes feel much bigger.

AI: The Conductor of Consistency

AI isn’t just a tool for the future; it’s already here, helping IR teams monitor peer disclosures, compare messaging across documents, and spot discrepancies in reported numbers. Think of AI as your conductor—helping you keep the orchestra in tune, so the market hears a coherent story, not a cacophony of mixed signals.

Leaning Into Dissonance

At the end of the day, chasing dissonance isn’t about eliminating every contradiction. It’s about knowing when to lean into the tension—acknowledging the market’s hunger for information while holding firm to the principles of fairness and transparency. It’s about bringing the market back in key, even when the notes don’t always align.

What’s next

Of course using AI comes with its own challenges. You need to make sure each document is properly labeled and be able to orchestrate where the questions should be directed to avoid sharing privileged information. At my company Virtua Research, we built a process to avoid these security issues. Reach out if you would like to further discuss how we implement our secure AI solution.

Next week, I will delve into another risk management topic . For now, if any of this resonates, or you think I am missing something, don’t hesitate to reach out or share your thoughts.