Get Ready for SRD II Compliance - Impact and opportunities for intermediaries - Broadridge
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Get Ready for SRD II Compliance Impact and opportunities for intermediaries
The deadline for SRD II
compliance is fast approaching
The revised Shareholder Rights The requirements for intermediaries fall under two core
areas: the need to offer an effective proxy voting service, and
Directive (SRD II) will significantly the need to identify shareholders when requested by issuers.
impact shareholder communications.
The obligations on intermediaries are significant: information
Issuers, investors and intermediaries must be passed quickly and securely, placing demands
must comply with new requirements on technology and communication flow as all requests,
responses and authentications need to pass through
on how information is shared. multiple parties.
The scope of the regulation is global, impacting any financial The countdown is on for implementation in September
intermediary holding or servicing European equities, wherever 2020, meaning firms must get ready now.
it is located. Crucially, the time to act and get ready is now.
Broadridge is at the forefront of the changes impacting
The regulation aims to increase the accuracy and the investor communications industry. SRD II introduces
transparency of communications between issuers and challenging requirements and we are committed to
investors – facilitating more active shareholder engagement. providing new solutions to meet these requirements,
The new rules will have a significant impact across the entire streamline critical investor communications and drive
investor communications chain from issuer to investor, and transparency.
particularly intermediaries who must comply with new rules
on the sharing of information. Let us show you what’s next.
What this means for you:
The new requirements
1 2 3
Agenda Distribution Vote Confirmation Shareholder Disclosure
and Voting
• D
istribution of proxy notices • If requested by a shareholder, • D
isclosure requests for listed
to all clients ’without delay’ issuers must confirm receipt companies must be passed
and recording of vote electronically passed through
• S ame-day processing of vote
instructions the communications chain
instructions
• The flow of this information • R
esponses must be made
• E lectronic, machine readable
will likely take place through within the same business day
messaging required, with
the chain of intermediaries,
minimum standards for • A
uthentication / validation
placing an additional demand
data formatting required to verify all requests
on the communication flow
• E lectronic, machine readable
process requiredA comprehensive suite of
solutions for SRD II compliance
Broadridge offers comprehensive, end-to-end support through
the voting process for all intermediary types, including retail,
commercial and private banks, and wealth managers as well as SRD II-ready Asset Servicing
institutional brokers, custodians and CSDs. We help you meet your from Broadridge
new SRD II compliance obligations on time and with confidence.
Our holistic Asset Servicing
• O
ur flexible Global Proxy Solution enables you to provide a solution improves your
seamless proxy voting service to institutional or retail clients, operational efficiency, timeliness
tailored to your requirements, through a state-of-the-art and accuracy and reduces costly
streamlined, intuitive, online experience. risk associated with missing
corporate actions.
• Our unique Shareholder Disclosure Hub enables you to pass
on or respond to shareholder identification requests accurately Broadridge’s SRD II-ready platform
and securely within the required deadlines allows you to streamline and
manage the entire asset servicing
life cycle, from announcement
data capture and cleansing to
client election and instruction
maintenance.
1 2 3
Agenda Distribution Vote Confirmation Shareholder Disclosure
and Voting (institutional clients)
SOLUTION SOLUTION
Global Proxy Solution Shareholder
• Manages translation and distribution of meeting Disclosure
agendas for all markets, EU and non-EU
• Vote processing without delay • Provides shareholder ID monitoring
• Facilitation of confirmation requests for • Request forwarding
institutional shareholders • Response filing
• Recording and counting of votes cast • Helping intermediaries to fulfill
shareholder ID obligationsUnrivalled proxy voting
technology and infrastructure
Our secure, state-of-the- It allows you to minimise the impact 4. Integrated research and analytics –
of SRD II on your business by taking freedom of choice through seamless
art platform supports action now to comply with all the access to your preferred sources of
every part of the proxy requirements. independent voting research and
analytics. Direct access to third party
lifecycle and enables 1. Direct sourcing of meeting vendors and Broadridge analytics.
agendas in local markets – across
shareholder participation all markets, we can remove the 5. Vote processing, execution and
through a proven, world- complexity of sourcing meeting confirmation – cross-border and local
notifications and agendas. market solution that improves the
class experience. efficiency and cost effectiveness of vote
2. Agenda translation and execution and meeting attendance,
distribution – distribution of enabling every vote to get to the right
notifications and agendas, translated place, at the right time. This supports
into the English language where intermediaries’ requirements to
required, through a choice of online evidence shareholder engagement and
and branded delivery tools, including enhance corporate governance.
via third party proxy advisors.
6. Meeting results – sourced and
3. Entitlement calculations – fully tracked with full online access.
reconciled, beginning on notification
date through record date with the Additional service options to support
latest account positions. your voting process include:
• Power of attorney solicitation services
• Securities lending management services
• Vote confirmation services
• Securities class actions services.
2 Agenda translation
and distribution
1 Direct sourcing of
meeting agendas in
local markets
5 ote processing, execution
V
and confirmation
6 Meeting results
3 Entitlement calculations
VOTE
4 Integrated research and analyticsWITH OUR SOLUTION, VOTING IS:
TRANSPARENT ACCURATE
Ensuring that investors have complete Powerful processing ensures millions of votes
understanding as to where their vote is in are counted correctly and records properly
the process, ultimately culminating in a vote reconciled every day.
confirmation where available.
LOW RISK COST EFFICIENT
The process is highly automated, secure Leveraging our global infrastructure provides
and ISO 27001 certified and the complete industry-leading economies of scale, delivering
process having a near 0% error rate. operational and cost efficiencies.
FAST SIMPLE
Delivering information to investors earlier, Simply enable compliance and increase
giving them more time to research and make operational efficiency with our comprehensive,
voting decisions. end-to-end global proxy solution.
Flexible global proxy
user experiences
Our unique ‘freedom of choice’ model enables flexible delivery of
meeting information and ballots to institutional or retail clients,
or their agents, through your chosen channel, while providing
robust management and monitoring capabilities.
Institutional Clients Retail Clients
We provide a flexible offering to support your We provide a white-labelled online interface for retail
institutional clients with a single consolidated shareholders, enabling you to create a seamless
dashboard for proxy management (ProxyEdge®) customised voting experience within your existing online
tailored to your precise voting and reporting needs. portal. Investor Mailbox consolidates all communications
Our unique ‘freedom of choice’ model enables the into a single portal and the ProxyVoteTM app provides a
delivery via your clients’ preferred channel. powerful mobile voting platform.
ProxyEdge® Vote Agents SWIFT Investor Email ProxyVoteTM
(eg. ISS, GlassLewis) Mailbox desktop/mobileA new solution for
shareholder disclosure
Broadridge’s Shareholder Disclosure Simple API
Make use of the platform quickly through seamless
Hub is an EU market-wide platform connectively with our APIs.
based on blockchain technology that
Risk Reduction
enables you to respond efficiently and Significantly reduce risk, such as the risk of data leakage to
unauthorised recipients, and the risk of failure to forward
securely to issuer requests within the or respond to a request.
required deadlines.
Cost Savings
Our solution manages all requests and responses, Avoid the need to build and support your own multi-
authenticating disclosure requests and delivering these jurisdiction message communication solutions.
through straight-forward interfaces for all intermediaries.
Efficient Processing
Regulatory Compliance Utilise automated file uploads, easy to use interfaces and
Support your compliance obligations across EU/EAA markets standard reports.
with all SRD II shareholder disclosure obligations, providing
simple oversight and proof of compliance status. Blockchain Technology
Rely on Broadridge to handle complex data chains
Operational Efficiency accurately, quickly, securely and transparently.
Manage single EU/EAA wide platform, rather than multiple
separate ones.
Data Security
Support your compliance requirements for all data
protection legislation, including GDPR.THE BROADRIDGE DIFFERENCE
Account management and Comprehensive breadth of
client service excellence additional service choices
Best-in-class client services A wide range of support for
from full-time dedicated all your institutional and retail
account teams based in the clients’ needs
same timezones where our
clients are located Highest standards of
cybersecurity and
Delivery of operational and business continuity
cost efficiencies Minimise the risk of data,
Fully automated, award- compliance and reputational risk
winning solutions for proxy through our robust security and
distribution and vote processing business continuity model
infrastructure
Neutral and transparent
Advanced, leading solutions Broadridge is a neutral and
Significant, ongoing investments independent service provider,
in technology and resources committed to bringing
to help firms meet regulatory transparency to the shareholder
requirements and prepare for voting network security and
market change business continuity model
Committed global market
leadership
Supporting proxy processing
for 30 years, with ISO 27001
certified operations and fully
audited by external firms
Broadridge, a global fintech leader with $4 billion in revenue, provides
communications, technology, data and analytics solutions. We help drive business
transformation for our clients with solutions for enriching client engagement,
navigating risk, optimising efficiency and generating revenue growth. Communications
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