What to do if your trustee is accused by authorities (or if something out of your control threatens your business)?

What to do if your trustee is accused by authorities (or if something out of your control threatens your business)? 

You wake up to headlines announcing your trustee is under investigation by U.S. regulators. Or maybe a key counterparty is suddenly sanctioned, a major lender collapses, or new regulation hits your industry overnight. Even if your operations are squeaky clean, the fallout can hit your reputation, access to financing, and investor trust in a matter of hours. 

What would be the best IR practices to handle this? 

1. Get the Facts—Fast. Don’t rely on rumors or social media. Demand formal statements from the relevant parties clarifying what’s alleged, which entities are involved, and what jurisdictions are affected. If it’s a regulatory change, get expert legal analysis immediately.
2. Assess Your Exposure. Work with counsel to understand whether any of your trust’s assets, cash flows, or governance processes are entangled. Could the trustee’s legal troubles freeze transactions? Are any counterparties in breach of contract? Do new sanctions or regulations limit your ability to pay or collect? If you have U.S. investors or cross-border funding, expect tough questions. Put yourself in their shoes and think what they will need to decide in the coming months. This is especially crucial if your stock’s liquidity is low and investors must plan exits carefully. Once an investor decides to exit a position, the damage is done.
3. Prepare Clear Messaging. Silence breeds panic. Draft a factual, calm statement explaining you are aware of the situation, what you know and what you don’t know yet, whether your operations remain unaffected, and what steps you are taking to protect stakeholders. Be transparent about uncertainty while conveying control.
4. Engage Proactively with Investors. Reach out to your top holders before they call you. Acknowledge concerns, reinforce transparency, and share your action plan as much as possible. For highly material events, consider hosting a conference call or web briefing to address questions directly.
5. Map Out Contingencies. If the trustee’s ability to act is impaired, you’ll need alternative arrangements quickly. Start exploring reputable replacements now—waiting will cost you leverage and can worsen disruption if the situation escalates.
6. Monitor the Narrative. Keep an eye on media coverage, sell-side reports, and social channels. Misinformation can spiral rapidly. Correct inaccuracies with factual statements and consistent messaging across platforms.
7. Document Everything. Keep a clear record of your assessments, board discussions, and decisions. Investors and regulators alike will expect evidence that you acted prudently and decisively. 

When external shocks hit—whether a trustee accusation, regulatory upheaval, or geopolitical surprise—it’s not just someone else’s problem. It’s your credibility, valuation, and relationships on the line. Move fast, communicate clearly, and demonstrate you’re in control. 

For more information, feel free to contact: 
ana.ybarra@miranda-ir.com or damian.fraser@miranda-partners.com