Hungary: KELER establishes Issuer Working Group

UniCredit Bank Hungary Zrt.
Summary: 
KELER established Issuer Working Group, the work of which will be focused on reaching common understanding of corporate actions issues together with the issuers, on interpreting the provisions of the new Civil Code and on its Strategic Modernisation Program
Fri, 22/11/2013

In the last Issuer Forum held on 1 October 2013 KELER requested its issuer clients to take part in the establishing of the Issuer Working Group (IWG) of the Market Implementation Group (MIG) together with KELER and the custodian banks. IWG was set up in order to create an active bilateral communication with the issuers with respect to international and Hungarian market changes.

According to the planned schedule the working group intends to find a common understanding with the issuers with regards to the following key topics:

  • Corporate actions: interpretation of international standards, discussion of the Christmas Tree Model (where the main goal is for the corporate actions information announced by the issuers to reach the investors as soon as possible through the predetermined information chain), documentation requirements for shareholder meetings.
  • Interpretation of the new Civil Code (coming into force on 15 March 2014), which will introduced changes such as: appearance of new types of financial instruments, new issuance procedure for dematerialised securities, centralised share registry management service.The new Civil Code will allow issuers to apply a wider interpretation of share types - the aim of KELER is to determine the range of currently existing and new potentially issued securities types as widely as possible.
  • The Strategic Modernisation Program (SMP) of KELER.

IWG aims at providing a formal framework for a market-wide professional dialog and information sharing, making it possible to discuss and assess the expected tasks and issues that can affect the clients and the other market participants. The working group has already had two meetings, with a further session of consultations taking place bvetween them.

Impact on investors: IWG will continue its work in order to find a common understanding with the other affected market participants on the forthcoming legislative changes. Owing to the effective cooperation and harmonised work, clients will receive all appropriate information in a timely manner and would be able to prepare for the expected changes.