TWSE "Securities Services Bimonthly" Column - IR Certification: Are Taiwan's IROs on the Path to Professionalization?

In collaboration with the Taiwan Stock Exchange (TWSE), TIRI shares practical experience in Investor Relations (IR) through the column in the Securities Services Bi-monthly.
Article by Mr. Jonathan Chiu, former Secretary-General, TIRI

The IR profession has been developed for over fifty years in advanced Western countries, integrating corporate finance, communication, marketing, and compliance with securities regulations to facilitate fair valuation of corporate stocks and enhance shareholder value. It is the most powerful strategic function for bi-directional communication between corporations, the capital market, and other stakeholders. In Taiwan, due to capital market demands and regulatory promotions, IR has gradually been recognized and enhanced.

Traditionally, the role of IR was mostly developed through the transfer of experience from senior corporate colleagues, participation in relevant courses offered by training institutions, or through the training assistance provided by large brokerage firms and investment banks before a company’s IPO. Practitioners learned on the job, gradually accumulating experience through industry exchange and self-improvement.
While professionalism can be achieved through individual effort and exploration, a more systematic and standardized approach to skill development, and obtaining internationally recognized qualifications after dedicated effort, can significantly enhance professionalism, honor, and self-identification among practitioners, benefiting the long-term and stable development of the IR field.

Structured learning of fundamental knowledge and practical cases, and obtaining a follow-up certification, such as CFA or CPA, can elevate a company’s appreciation and emphasis on this skill set.
In response, international IR associations have begun to introduce professional IR certifications. For example, the National Investor Relations Institute (NIRI) in the USA promotes the Investor Relations Charter (IRC®), and the IR Society in the UK has launched The Certificate in IR (CIR®), both widely recognized within the global IR community as benchmarks for practitioner capabilities and essential qualifications for IR job applications.

Internationally recognized IR certifications require certain practical experiences. For instance, while NIRI’s IRC system allows anyone to apply for the written exam, candidates must submit proof of at least three years of IR work experience within a specified period after passing the exam and must have engaged in at least seven out of ten defined domains of practice to officially receive the certification.

The IRC exam is conducted in English, comprising 170 multiple-choice questions to be completed on a computer in three hours. Preparation materials include NIRI’s online courses, e-books, and recommended reading lists, without revealing a complete database of past exam questions.

Despite the choice-based format and three-hour duration, which might seem manageable, the real challenge, as shared by Taiwan’s first IRC holder, Tina Chang, the Deputy Director of IR at Compal Electronics, Inc. lies in scenario-based questions. These questions often describe real situations practitioners face, offering very close and seemingly correct answer choices, requiring test-takers to choose the best answer based on IR principles.
Apart from enhancing practical IR thinking skills, IRC materials also cover two areas less familiar to Taiwanese IROs but greatly beneficial: IR Disclosure and US regulatory standards. Most Taiwanese companies do not have strict Disclosure Policies, and learning the orthodox methods through these materials is valuable, exam aside. The US regulatory standards are also practical knowledge for those aiming to serve in the international capital markets or public offerings.

IRC exam does not release score reports, so candidates do not know their exact scores. There is no set 'passing score'—instead, NIRI adjusts based on the overall performance of all candidates in that session. The passing score for the IRC exam is achieving 112 correct answers out of 160 scored items. The exam also includes 10 unscored pilot items that are used to shape future exams; these do not affect the candidate’s pass/fail status.
Besides those keen to learn IR professionally, the following three groups are particularly suited for obtaining an IR certification:
1.Companies issuing ADR/GDR or those with a high percentage of QFII holdings, better understanding international investors.
2.IR practitioners serving in publicly listed companies, aiding career advancement domestically or internationally.
3.Those interested in learning mature capital market IR standards or seeking employment abroad, using internationally focused and practice-based certifications as a stepping stone.

Through strategic collaboration between TIRI and NIRI, candidates wishing to pursue the IRC certification need not travel to the USA; they can take the exam directly in Taiwan and enjoy the same benefits as NIRI members. The maintenance requirements after obtaining the certification can also be fulfilled by participating in IR-related activities organized by TIRI.
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Both IRC and CIR are globally recognized qualifications. Currently, there is no professional certification system in Taiwan. It is hoped that as the industry and professional experience accumulate, a local evaluation system will be established to enhance the professionalism of practitioners and serve as a foundational qualification.

TWSE "Securities Services Bimonthly” URLs:
Index:　https://www.twse.com.tw/staticFiles/product/publication/0001068001.pdf
Article:  https://www.twse.com.tw/staticFiles/product/publication/0001068006.pdf