SRDII services from Euronext VPS

SRD II regulation in the Norwegian market is about to be decided upon. Euronext VPS is in the process of developing services ensuring that issuers and intermediaries will be able to meet the requirements from the new regulation.

We will enhance the Issuer Portal (VIS) with all services needed for the issuers to be compliant with the new regulation. In cooperation with Euronext Corporate Services, Euronext VPS will offer shareholder analyses so that the issuer can interact with its shareholders, increase liquidity and expand their shareholder base. Investors will receive information about corporate actions through use of ISO messages and existing portals like the Investor Portal (VIP). Finally, Euronext VPS will enable communication with intermediaries through automated processes that will ensure an efficient flow of communication.

SRD II services from Euronext VPS

Euronext VPS is currently developing services and features for SRD II based on the following three pillars:

  1. General Meeting Services
    Our General Meeting Services will be improved to secure that issuers and their intermediaries remain compliant with SRD II requirements.
  2. Shareholder Identification Services
    Euronext VPS are currently developing ISO 20022 messages to support the issuers need for disclosure of their beneficial shareholders. Furthermore, we will offer functionality for the issuers to order shareholder identification by using the Issuer Portal (VIS). Shareholder Identification Services will be delivered in cooperation with Euronext Corporate Services.
  3. Corporate Action
    Euronext VPS will provide services that ensure shareholders exercise of the shareholders rights by give the end investor information about all corporate actions in theVPS investor Portal (VIP) and by sending information to intermediaries in ISO messages.

SRDII regulation in Norway

A proposal for the implementation of SRD II was submitted for public consultation in November 2019. The consultation follows a previous consultation of January 2019. The comments received in the previous consultation has resulted in an amended proposal. The consultation addresses the implementation of the provisions in SRD II regarding the issuer’s right to identify its shareholders and the intermediaries’ obligations to transmit information regarding corporate actions from the issuer to the shareholders and to facilitate the shareholders’ exercise of shareholders rights.

The proposal also sets out significant amendments to the rules regarding the general meetings. The purpose of the amendments is to facilitate the participation of nominee registered shareholders. To this end it is proposed that nominee registered shareholders that intend to take part in the general meeting must notify the issuer three days before the date of the meeting. It is also proposed that the record date for shareholders- meeting shall be five days before the date of the meeting. Companies with shares admitted to trading on a regulated market must make public a list of the shareholders that attended the meeting.

Under the proposed rules Norwegian limited companies will be obligated to make public a list of all shareholder in the company, included nominee registered shareholders.

Under the proposal the rules in SRD II is made applicable for all Norwegian limited companies which allows nominee registered shareholders. The rules of the directive will therefore be applicable not only for companies with shares admitted to trading on a regulated market.

The consultation closed 6 January 2020. It is expected that a proposal will be presented to the Norwegian parliament in the first half of 2020 in order for the amended rules to be implemented within the implementation deadline of the SRD II in September 2020.

 

Euronext VPS will continue to monitor and engage in dialogue with clients and authorities on further implementations on SRD II, and will invite for a SRD II seminar late March. A separate invitation will be sent shortly.