Report highlights widespread opportunities to
improve
LONDON, Oct. 6, 2022 /PRNewswire/ -- Although the updated
Shareholder Rights Directive (SRD II) has been a positive step for
increasing transparency and automation through the digitalization
of proxy voting in Europe, there
is an opportunity for further progress given the varying
implementation standards across the region, according to a newly
released white paper sponsored by global Fintech
leader Broadridge Financial Solutions, Inc. (NYSE: BR).
The white paper, "SRD II and Beyond - The Continuing Effort
to Enhance Issuer to Investor Communication", published by
Firebrand Research, highlights the significant focus of the
European Securities and Markets Authority (ESMA) and the European
Commission (EC) on the asset servicing space to increase
transparency and engagement between issuers and investors. These
efforts specifically encourage automation and shareholder
participation in corporate governance activities such as proxy
voting.
The white paper draws particular attention to the varying levels
of SRD II adoption across European states, and the current status
at a market level. As SRD II was a directive rather than a
regulation, each member state had discretion on how rules within
the directive were transposed into local laws, resulting in the
implementation of several different interpretations of the
directive. Based on Broadridge's analysis, 75% of eligible
intermediaries that have holdings in SRD II markets are yet to
fully adopt the SMPG-recommended MX20022 messaging required by the
directive.
"ESMA will likely address any outstanding SRD II transposition
delays with national competent authorities over the next 24
months," said Virginie O'Shea,
founder and CEO of Firebrand Research. "In the meantime, there is
an opportunity for market intermediaries to advance their state of
readiness in order to address any unmet market level compliance
obligations."
"Given the popularity of governance as a topic due to ESG
investment strategies and investor appetite, the market can expect
the volume of voting at general meetings to increase year on year,"
said Demi Derem, general manager of International Investor
Communication Solutions, Broadridge. "This in turn will require
intermediaries – banks, brokers, wealth managers and CSDs - to
further automate processes for all markets, locally and
internationally, through a robust end to end service for the proxy
voting lifecycle."
To download the SRD II and Beyond - The Continuing Effort to
Enhance Issuer to Investor Communication report, click
here.
About Broadridge
Broadridge Financial Solutions (NYSE: BR), a global Fintech
leader with $5 billion in revenues,
provides the critical infrastructure that powers investing,
corporate governance, and communications to enable better financial
lives. We deliver technology-driven solutions that drive business
transformation for banks, broker-dealers, asset and wealth managers
and public companies. Broadridge's infrastructure serves as a
global communications hub enabling corporate governance by linking
thousands of public companies and mutual funds to tens of millions
of individual and institutional investors around the world. Our
technology and operations platforms underpin the daily trading of
more than $9 trillion of equities,
fixed income and other securities globally. A certified Great Place
to Work®, Broadridge is part of the S&P 500® Index, employing
over 14,000 associates in 21 countries.
For more information about Broadridge, please visit
www.broadridge.com
Investors:
W. Edings Thibault
Head of Investor Relations
+1 516-472-5129
edings.thibault@broadridge.com
Media:
Gregg Rosenberg
Global Head of Corporate Communications
+1 212 918 6966
gregg.rosenberg@broadridge.com
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