VP Securities helps issuers collect shareholder disclosure information
VP Securities is launching a new functionality that will collect shareholder disclosure information on behalf of issuers.
New directive replaces manual processThe current process of requesting and receiving this information is far from straightforward. “Today, each custody bank has to be contacted individually, which makes gathering shareholder information a time-consuming and manual process,” Helen Sørensen, Product Manager at VP explains. SRD II, however, stipulates that the data will be sent using straight through processing (STP), which enables VP to step in and offer a simpler and more efficient method of getting shareholder information on behalf of issuers.
The Collector solutionVP has developed a Collector solution, where VP collects the investor information from the custodial banks, gathers it into a comprehensive report and delivers that information to the requesting issuer. The solution is available to all companies that have issued and registered their shares with VP.
“As an issuer CSD, we’re able to use the technological infrastructure that SRD II has put in place,” says Helen Sørensen. “By using internationally recognized communication standards, we can bypass the manual work typically associated with gathering this information. We’re also used to handling personal data and already have methods in place for securely processing confidential information. So, it makes sense that we can, as a neutral party, collect this information and provide it to our customers in a report.”
Launch in Q1 2021The new functionality will be available by the end of Q1, in time for the Annual General Meeting season. “We realise that this is where our customers will be most interested in using this type of service to identify their shareholders.” And according to Helen Sørensen, there is already considerable interest around this new functionality. “We’ve seen a great deal of interest from the companies that issue with us, and we already have a test customer lined up.”
A service with great potentialConcurrently, VP is working with the other Euronext CSDs to explore developing a pan-European solution that would be available to issuers in all of Euronext’s markets. VP is also looking into how to improve the usability of the shareholder information report. “Once we’ve gathered all of the shareholder information, the resulting report could be quite large in size. So, we’re exploring ways we could improve the readability of the report, perhaps by producing a summary or other high-level document,” Helen Sørensen says. There are a number of possibilities to improve and expand the service, once its implemented, and this helps to underscore the potential of applying technological innovation to fulfil a regulatory requirement. “I think this is a good example of how we can use our technical know-how to help issuers benefit from new legislation,” she concludes.
Fact box: About SRD II
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