LAKE SUCCESS, N.Y.,
Nov. 30, 2017 /PRNewswire/
-- Broadridge Financial Solutions, Inc. (NYSE:BR), the global
leader in investor communications for banks, mutual funds and
public companies, has partnered with Aite Group to publish a new
report on the updated Shareholder Rights Directive, a European
regulatory initiative designed to encourage shareholder engagement
in listed companies in Europe and
improve the transparency of related processes including proxy
voting.
The report, Shareholder Rights Directive: Advancing to a
State of Readiness, highlights the need for stakeholders to
engage with regulatory authorities to help shape an outcome that is
equitable and commensurate with the corporate governance benefits
of the directive, as well as ensuring orderly adherence to the
incoming rulebook as the 2019 deadline approaches. The report
identified several anticipated challenges in the introduction of
the legislation, including the need to achieve a market standard
for implementation by avoiding differing interpretations by
national regulators.
"The Shareholder Rights Directive will bring a welcome level of
transparency and governance, particularly in relation to proxy
voting processes and issues such as director remuneration," said
Demi Derem, general manager, Investor Communication Solutions
International at Broadridge. "Broadridge is building collaborative
model solutions and actively working with the industry to help its
clients and all market participants involved in the shareholder
communications value chain to prepare to meet their compliance and
business objectives for the new rules well ahead of the EU's
deadline for implementation."
The report also points to the problem of "regulatory fatigue,"
highlighting a large volume of on-going regulatory changes, as well
as the likelihood that many firms have not yet assessed the full
impact of the directive on their operations.
"The directive will drive greater transparency and enable more
well-informed voting decisions by shareholders, however, the new
requirements could create a myriad of operational challenges," said
Virginie O'Shea, Research Director,
Aite Group. "For example, national regulators have been given a
relatively wide scope to interpret the new rules, which could lead
to fragmented adoption and the absence of a common market standard.
Industry stakeholders must use the review period to engage with
regulatory bodies and address problems before they arise."
The majority of the directive, an amended version of the
original 2007 legislation, must be translated by individual
European member states by June 2019.
The European Commission (EC) is now working with ESMA to
produce technical standards that will guide national
regulators.
About Broadridge
Broadridge Financial Solutions, Inc. (NYSE:BR), a $4 billion global fintech leader, provides
investor communications and technology-driven solutions for
broker-dealers, banks, mutual funds and corporate issuers globally.
Broadridge's investor communications, securities processing and
managed services solutions help clients reduce their capital
investments in operations infrastructure, allowing them to increase
their focus on core business activities. With over 50 years of
experience, Broadridge's infrastructure underpins proxy voting
services for over 90 percent of public companies and mutual funds
in North America, and processes
more than $5 trillion in fixed income
and equity trades per day. Broadridge employs approximately 10,000
full-time associates in 16 countries. For more information about
Broadridge, please visit www.broadridge.com.
Contact Information:
Investors:
W. Edings Thibault
Head of Investor Relations
+1 516-472-5129
edings.thibault@broadridge.com
Media:
Gregg Rosenberg
Corporate Communications
+1 212-918-6966
gregg.rosenberg@broadridge.com
Brett Philbin
Edelman
+1 212-704-8263
brett.philbin@edelman.com
Hannah James
Cognito
+44 (0) 20 7426 9400
hannah.james@cognitomedia.com
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SOURCE Broadridge Financial Solutions, Inc.