Section 17(b) notice

What the law says

Section 17(b) of the Securities Act of 1933 makes it unlawful to publish, publicise or circulate any communication that describes a security in return for consideration received, directly or indirectly, from an issuer, underwriter or dealer, without fully disclosing that consideration — that it was received or will be received, and how much.

IRster's position

Listed companies pay IRster for market packs: research on which investors, creators, brokers and events are relevant to them. IRster does not publish, publicise or circulate descriptions of any customer's securities, and does not pay creators, analysts or anyone else to discuss a customer's stock. Listing a creator in a pack is not an endorsement of the creator or of any security, and nobody listed is paid by IRster.

If you work with someone listed in a pack

If your company gives anything of value to a creator, newsletter writer or other person who then discusses your stock — a fee, shares, a sponsored trip, paid media or an introduction arranged in return — Section 17(b) requires them to disclose that they were compensated and the amount. That applies whatever language they publish in and wherever their audience is.

• Put the disclosure requirement in writing before any paid arrangement starts.
• Check that each paid piece carries the disclosure where the audience will see it.
• Other rules can apply on top: the FTC's endorsement guides in the United States, and local rules on paid financial promotion in the creator's own market.