Broadridge partners with CSD to streamline Danish proxy voting

New service covers event notification and direct execution, while supporting compliance.

By Richard Schwartz

Broadridge Financial Solutions has launched live operations of a new “golden copy” event notification and direct vote execution service for the Danish market. 

Working with Euronext Securities Copenhagen, the Danish CSD, the service allows global and domestic banks, custodians, wealth managers and local agents to streamline the proxy voting lifecycle in Denmark, while supporting compliance obligations under the Shareholder Rights Directive (SRD II) and Denmark’s updated Companies Act.

The service is the latest addition to Broadridge’s Direct Market Solutions (DMS) product suite, which focuses on traditional sub custody voting related activities. Meeting notifications are sourced directly from Euronext.

“It is our strategic priority to advance shareholder democracy and empower investors – institutional and retail – through the most efficient proxy voting ecosystem for both cross-border and local market participants,” said Demi Derem, GM, international investor communications solutions at Broadridge. “Through close collaboration with Euronext Securities Copenhagen, we have again demonstrated the importance of partnering with market leading infrastructure providers.”

Niels Hjort Rotendahl, CEO, Euronext Securities Copenhagen, added: “With ESG as a central component for investors, the need for best-in-class governance and stewardship practices has never been stronger. Our collaboration with Broadridge will provide a more direct chain of proxy communications, and a higher level of service quality for all players.”

The Danish Companies Act recently removed the need to present Power of Attorney documents, which Rotendahl anticipates will lead to a significant rise in shareholder participation at meetings.

Over the remainder of the year and into 2023, Broadridge plans to expand its market coverage for proxy processing and extended voting windows into more markets.