Broadridge is planning to launch a new blockchain-based shareholder disclosure platform in Europe in preparation for the incoming European Shareholder Rights Directive.
It is also planning a series of process enhancements in order to support both institutional intermediaries for global proxy voting.
The blockchain-based shareholder disclosure platform will enable intermediaries to meet their disclosure obligations, helping address a significant aspect of the Directive which will entitle EU-based issuers to obtain the identify of their shareholder.
This requires intermediaries holding an issuer’s shares to provide shareholder disclosure within 24 hours of receiving the request.
“The updated Shareholder Rights Directive is the most comprehensive change to European corporate governance standards and processes in many years. As a neutral and independent service provider, Broadridge is focused on continually raising governance and transparency standards throughout the shareholder voting network,” said Demi Derem, general manager, Investor Communication Solutions International, Broadridge.
Broadridge is working with custodian clients, banks, brokers and other market service providers and to leverage its global proxy voting infrastructure to help intermediaries navigate their new responsibilities under the Directive.
This will include the distribution of meeting agendas within stricter timeframes, reconciling votes on a daily basis and processing votes without delay.
It will also handle ass aspects of vote confirmation, including timely electronic confirmation of receipt and the post-meeting recording and counting of votes in all markets.
The regulation is set to come into force by 3 September 2020, requiring all intermediaries and other participants in the proxy voting lifecycle to be compliant. It’s scope could also extend beyond the EU, impacting firms domiciled outside of the region if they hold shares in EU-based issuers listed on EU markets.