1 / 8

Harmonisation of Corporate Actions Processing in Europe

Harmonisation of Corporate Actions Processing in Europe. Giovannini Barrier 3: "Harmonize national rules relating to corporate actions processing". COOPERATION ACROSS THE MARKET. Key message: Six European industry associations agreed on a very close cooperation. ECSDA and ESF are drivers .

kamuzu
Download Presentation

Harmonisation of Corporate Actions Processing in Europe

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Harmonisation of Corporate Actions Processing in Europe Giovannini Barrier 3: "Harmonize national rules relating to corporate actions processing"

  2. COOPERATION ACROSS THE MARKET Key message: Six European industry associations agreed on a very close cooperation. ECSDA and ESF are drivers. • EALIC - European Association of Listed Companies • ECSDA - European CSD Association • ESF - European Securities Forum • FBE - European Banking Federation • ESBG - European Savings Banks Group • EACB - European Association of Co-operative Banks >>>> All stakeholders are on board!

  3. UPDATE ON ASSOCIATIONS’ WORK • Without option (e.g. cash and stock dividends): 16 standards agreed. Implementation dates range from end 2006 to end 2010. • Optional distributions (e.g. rights issue):ECSDA standards to be published before end 2006. 1. Distributions

  4. 2. Reorganizations & Voluntary Events UPDATE ON ASSOCIATIONS’ WORK • Proposed standards in consultation stage • Considerable market practice fragmentation across Europe and some potential significant legal barriers • Implementation time frame: 3 years after the standards relating to mandatory distributions are implemented

  5. 3. General Meetings UPDATE ON ASSOCIATIONS’ WORK Goal is to enhance shareholders’ participation in general meetings ina cross-border environment. Standards are drafted in three areas: • Notice to convene the general meeting • Entitlement / shareholder qualification / record date • Notification of attendance to the general meeting Status: • Draft standards in consultation stage for the first two processes • Work in progress on third process • Final standards expected by mid-2007 • Implementation timeframe: to be decided

  6. 4. Market Claims UPDATE ON ASSOCIATIONS’ WORK • ECSDA: Market Claims Report published in July 2006. The report identifies 10 standards; barriers to implementation (mainly legal!); and a timeline: three years after the standards relating to reorganizations have been implemented. • 12 countries have completed their gap analysis so far.

  7. TOWARDS IMPLEMENTATION • To date, the six associations have agreed on a total of 45 common deliverables. More are forthcoming. • Most markets have set up a “Market Implementation Group" under the leadership of one national coordinator. • The Market Implementation Groups include all stakeholders. • National implementation plans are currently drafted. • Strong interdependencies with legal and fiscal constraints, with the removal of other Giovannini barriers, with company law and corporate governance, with market evolution, with the proposed EU Directive on Shareholders’ Voting Rights, with market infrastructure projects…..

  8. CORPORATE ACTIONS PROCESSING IN ASIA • No cross-border harmonization initiatives • Markets compare and exchange best practices, but improve processes independently within their own borders • Awareness, emphasis and commitment to adhere to international messaging standards (ISO) • Key priority across the region: Establishing electronic links between issuer, CSD and CSD participants, to enable STP and to reduce error rates e.g. in Malaysia, India, Singapore, Japan, Taiwan, Thailand

More Related